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Zacks Investment Ideas feature highlights: Berkshire Hathaway, W.R. Berkley and Kinsale Capital Group
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For Immediate Release
Chicago, IL – November 3, 2022 – Today, Zacks Investment Ideas feature highlights Berkshire Hathaway B (BRK.B - Free Report) , W.R. Berkley Corp. (WRB - Free Report) , and Kinsale Capital Group (KNSL - Free Report) .
Combat Rising Rates with These 3 Top-Ranked Insurance Stocks
The Fed's pivot to a hawkish nature has weighed heavily on stocks in 2022, forcing bears to come out of hibernation.
Stocks in the financial sector, such as insurers, can see their profit margins expand during higher interest rate environments.
Insurers primarily carry safe long-term bonds to back their policies. When interest rates rise, they can generate more money from their debt.
Three highly-ranked insurers – Berkshire Hathaway B, W.R. Berkley Corp., and Kinsale Capital Group– could all be considerations for investors looking to fight back against rising rates.
Let's take a closer look at each one.
W.R. Berkley Corp.
W.R. Berkley is a leader in commercial lines insurance, with over 50 specialized businesses worldwide and divided into two segments: Insurance and Reinsurance and Monoline Excess.
Analysts have upped their earnings outlook across the board over the last several months, helping push WRB into a Zacks Rank #1 (Strong Buy).
Additionally, the company pays out a dividend; WRB's annual dividend yield comes in at 0.5%, lower than that of its Zacks Finance sector average.
While the dividend yield may be on the lower end, the company's dividend growth picks up the slack – WRB has upped its dividend nine times over the last five years, translating to a 9.8% five-year annualized dividend growth rate.
For the cherry on top, WRB's growth projections are hard to ignore, with earnings forecasted to climb 26% in FY22 and a further 10.7% in FY23.
Sales estimates for FY22 and FY23 indicate Y/Y improvements of 15% and 8.4%, respectively.
Berkshire Hathaway
Berkshire Hathaway B is a diversified holding company, owning subsidiaries in insurance, railroads, utilities, manufacturing services, retail, and home building. BRK.B sports the highly-coveted Zacks Rank #1 (Strong Buy).
BRK.B has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in three consecutive quarters by double-digit percentages.
Just in its latest print, Berkshire Hathaway B penciled in a 43% EPS surprise paired with a 4.4% revenue beat.
BRK.B also carries an inspiring growth profile, with estimates calling for 16.6% earnings growth in its current fiscal year (FY22) and an additional 4.2% in FY23.
The projected earnings growth comes on top of suggested Y/Y revenue increases of 7.4% and 3.2% in FY22 and FY23, respectively.
Kinsale Capital Group
Kinsale Capital offers various insurance and reinsurance products, operating primarily through two markets: Commercial and Personal.
The company's earnings outlook has turned bright over the last several months, pushing the stock into a Zacks Rank #2 (Buy).
KNSL's projected growth is strong, further bolstered by its Style Score of an A for Growth. Earnings are forecasted to soar more than 25% in its current fiscal year (FY22) and an additional 22% in FY23.
The top-line is also healthy, with sales estimates suggesting Y/Y revenue upticks of 26% in FY22 and 29.6% in FY23.
In addition, the company's free cash flow has been on a solid uptrend; in its latest quarter, the company posted free cash flow of $175 million, indicating a 13% sequential uptick and an even larger 67% Y/Y uptick.
Bottom Line
A hawkish Fed has ruined the fun for stocks in 2022, with geopolitical issues and lingering COVID-19 uncertainties also being thorns in the market's side.
Still, during higher-interest rate environments, insurers, such as Berkshire Hathaway, W.R. Berkley Corp. and Kinsale Capital Group, can see their profit margins expand.
Additionally, all three carry a favorable Zacks Rank, telling us that their near-term business outlook is bright.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Berkshire Hathaway, W.R. Berkley and Kinsale Capital Group
For Immediate Release
Chicago, IL – November 3, 2022 – Today, Zacks Investment Ideas feature highlights Berkshire Hathaway B (BRK.B - Free Report) , W.R. Berkley Corp. (WRB - Free Report) , and Kinsale Capital Group (KNSL - Free Report) .
Combat Rising Rates with These 3 Top-Ranked Insurance Stocks
The Fed's pivot to a hawkish nature has weighed heavily on stocks in 2022, forcing bears to come out of hibernation.
Stocks in the financial sector, such as insurers, can see their profit margins expand during higher interest rate environments.
Insurers primarily carry safe long-term bonds to back their policies. When interest rates rise, they can generate more money from their debt.
Three highly-ranked insurers – Berkshire Hathaway B, W.R. Berkley Corp., and Kinsale Capital Group– could all be considerations for investors looking to fight back against rising rates.
Let's take a closer look at each one.
W.R. Berkley Corp.
W.R. Berkley is a leader in commercial lines insurance, with over 50 specialized businesses worldwide and divided into two segments: Insurance and Reinsurance and Monoline Excess.
Analysts have upped their earnings outlook across the board over the last several months, helping push WRB into a Zacks Rank #1 (Strong Buy).
Additionally, the company pays out a dividend; WRB's annual dividend yield comes in at 0.5%, lower than that of its Zacks Finance sector average.
While the dividend yield may be on the lower end, the company's dividend growth picks up the slack – WRB has upped its dividend nine times over the last five years, translating to a 9.8% five-year annualized dividend growth rate.
For the cherry on top, WRB's growth projections are hard to ignore, with earnings forecasted to climb 26% in FY22 and a further 10.7% in FY23.
Sales estimates for FY22 and FY23 indicate Y/Y improvements of 15% and 8.4%, respectively.
Berkshire Hathaway
Berkshire Hathaway B is a diversified holding company, owning subsidiaries in insurance, railroads, utilities, manufacturing services, retail, and home building. BRK.B sports the highly-coveted Zacks Rank #1 (Strong Buy).
BRK.B has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in three consecutive quarters by double-digit percentages.
Just in its latest print, Berkshire Hathaway B penciled in a 43% EPS surprise paired with a 4.4% revenue beat.
BRK.B also carries an inspiring growth profile, with estimates calling for 16.6% earnings growth in its current fiscal year (FY22) and an additional 4.2% in FY23.
The projected earnings growth comes on top of suggested Y/Y revenue increases of 7.4% and 3.2% in FY22 and FY23, respectively.
Kinsale Capital Group
Kinsale Capital offers various insurance and reinsurance products, operating primarily through two markets: Commercial and Personal.
The company's earnings outlook has turned bright over the last several months, pushing the stock into a Zacks Rank #2 (Buy).
KNSL's projected growth is strong, further bolstered by its Style Score of an A for Growth. Earnings are forecasted to soar more than 25% in its current fiscal year (FY22) and an additional 22% in FY23.
The top-line is also healthy, with sales estimates suggesting Y/Y revenue upticks of 26% in FY22 and 29.6% in FY23.
In addition, the company's free cash flow has been on a solid uptrend; in its latest quarter, the company posted free cash flow of $175 million, indicating a 13% sequential uptick and an even larger 67% Y/Y uptick.
Bottom Line
A hawkish Fed has ruined the fun for stocks in 2022, with geopolitical issues and lingering COVID-19 uncertainties also being thorns in the market's side.
Still, during higher-interest rate environments, insurers, such as Berkshire Hathaway, W.R. Berkley Corp. and Kinsale Capital Group, can see their profit margins expand.
Additionally, all three carry a favorable Zacks Rank, telling us that their near-term business outlook is bright.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.