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Stewart Information Services (STC) Gains But Lags Market: What You Should Know

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In the latest trading session, Stewart Information Services (STC - Free Report) closed at $56.33, marking a +0.07% move from the previous day. The stock lagged the S&P 500's daily gain of 1.99%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.06%.

Coming into today, shares of the title insurance and real estate services company had gained 11.6% in the past month. In that same time, the Finance sector lost 5.79%, while the S&P 500 lost 7.24%.

Wall Street will be looking for positivity from Stewart Information Services as it approaches its next earnings report date.

Investors might also notice recent changes to analyst estimates for Stewart Information Services. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 20.36% lower within the past month. Stewart Information Services is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Stewart Information Services's current valuation metrics, including its Forward P/E ratio of 7.95. Its industry sports an average Forward P/E of 13.75, so we one might conclude that Stewart Information Services is trading at a discount comparatively.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow STC in the coming trading sessions, be sure to utilize Zacks.com.


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