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W.R. Berkley (WRB) Hits 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of W.R. Berkley (WRB - Free Report) ? Shares have been on the move with the stock up 13.6% over the past month. The stock hit a new 52-week high of $67 in the previous session. W.R. Berkley has gained 21.5% since the start of the year compared to the 0.8% move for the Zacks Finance sector and the 16.9% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 27, 2022, W.R. Berkley reported EPS of $1.02 versus consensus estimate of $0.81.
For the current fiscal year, W.R. Berkley is expected to post earnings of $3.62 per share on $11.07 billion in revenues. This represents a 6.47% change in EPS on a 19.57% change in revenues. For the next fiscal year, the company is expected to earn $4.01 per share on $12.66 billion in revenues. This represents a year-over-year change of 10.72% and 14.37%, respectively.
Valuation Metrics
W.R. Berkley may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
W.R. Berkley has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.8X. On a trailing cash flow basis, the stock currently trades at 16.4X versus its peer group's average of 13.8X. Additionally, the stock has a PEG ratio of 2.05. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, W.R. Berkley currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if W.R. Berkley fits the bill. Thus, it seems as though W.R. Berkley shares could have potential in the weeks and months to come.
How Does WRB Stack Up to the Competition?
Shares of WRB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Travelers Companies, Inc. (TRV - Free Report) . TRV has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. The Travelers Companies, Inc. beat our consensus estimate by 34.72%, and for the current fiscal year, TRV is expected to post earnings of $12.99 per share on revenue of $36.23 billion.
Shares of The Travelers Companies, Inc. have gained 9.5% over the past month, and currently trade at a forward P/E of 14.16X and a P/CF of 4.78X.
The Insurance - Property and Casualty industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for WRB and TRV, even beyond their own solid fundamental situation.
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W.R. Berkley (WRB) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of W.R. Berkley (WRB - Free Report) ? Shares have been on the move with the stock up 13.6% over the past month. The stock hit a new 52-week high of $67 in the previous session. W.R. Berkley has gained 21.5% since the start of the year compared to the 0.8% move for the Zacks Finance sector and the 16.9% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 27, 2022, W.R. Berkley reported EPS of $1.02 versus consensus estimate of $0.81.
For the current fiscal year, W.R. Berkley is expected to post earnings of $3.62 per share on $11.07 billion in revenues. This represents a 6.47% change in EPS on a 19.57% change in revenues. For the next fiscal year, the company is expected to earn $4.01 per share on $12.66 billion in revenues. This represents a year-over-year change of 10.72% and 14.37%, respectively.
Valuation Metrics
W.R. Berkley may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
W.R. Berkley has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.8X. On a trailing cash flow basis, the stock currently trades at 16.4X versus its peer group's average of 13.8X. Additionally, the stock has a PEG ratio of 2.05. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, W.R. Berkley currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if W.R. Berkley fits the bill. Thus, it seems as though W.R. Berkley shares could have potential in the weeks and months to come.
How Does WRB Stack Up to the Competition?
Shares of WRB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Travelers Companies, Inc. (TRV - Free Report) . TRV has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. The Travelers Companies, Inc. beat our consensus estimate by 34.72%, and for the current fiscal year, TRV is expected to post earnings of $12.99 per share on revenue of $36.23 billion.
Shares of The Travelers Companies, Inc. have gained 9.5% over the past month, and currently trade at a forward P/E of 14.16X and a P/CF of 4.78X.
The Insurance - Property and Casualty industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for WRB and TRV, even beyond their own solid fundamental situation.