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Should You Dump Navigators Group (NAVG) Stock Now?
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On Aug 9, 2016, Zacks Investment Research downgraded The Navigators Group, Inc. to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Navigators Group has been witnessing sharp downward estimate revisions after reporting disappointing second-quarter 2016 results. With respect to the surprise trend, the company has delivered negative surprises in two of the last four quarters, with an average miss of 4.83%.
The property and casualty (P&C) insurer reported second-quarter 2016 earnings of 81 cents per share, which missed the Zacks Consensus Estimate by 16.5%. Earnings plummeted 39.5% year over year, primarily due to higher expenses. In addition, underperformance by the International Insurance segment, owing to weak property catastrophe activity associated with Fort McMurray wildfires, led to the downside.
Navigators Group reported property catastrophe loss of $18.3 million in the reported quarter. This had an adverse impact on the company’s earnings.
Navigators Group’s underwriting profit plunged 93.5% year over year to $1.1 million. The downside is attributable to the underwriting loss incurred by the International Insurance business. Combined ratio deteriorated 620 basis points to 99.6% in the second quarter compared with 93.4% in the prior-year quarter.
The company witnessed a 17.7% rise in total expense in the second quarter, owing to high net losses and loss adjustment expenses as well as commissions and operating expenses.
The Zacks Consensus Estimate for 2016 moved down 2.6% to $5.00 per share over the last 7 days. For 2017, the same moved down 8.6% to $5.50 per share over the same time frame.
Some better-ranked stocks from the P&C industry are Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Should You Dump Navigators Group (NAVG) Stock Now?
On Aug 9, 2016, Zacks Investment Research downgraded The Navigators Group, Inc. to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Navigators Group has been witnessing sharp downward estimate revisions after reporting disappointing second-quarter 2016 results. With respect to the surprise trend, the company has delivered negative surprises in two of the last four quarters, with an average miss of 4.83%.
The property and casualty (P&C) insurer reported second-quarter 2016 earnings of 81 cents per share, which missed the Zacks Consensus Estimate by 16.5%. Earnings plummeted 39.5% year over year, primarily due to higher expenses. In addition, underperformance by the International Insurance segment, owing to weak property catastrophe activity associated with Fort McMurray wildfires, led to the downside.
Navigators Group reported property catastrophe loss of $18.3 million in the reported quarter. This had an adverse impact on the company’s earnings.
Navigators Group’s underwriting profit plunged 93.5% year over year to $1.1 million. The downside is attributable to the underwriting loss incurred by the International Insurance business. Combined ratio deteriorated 620 basis points to 99.6% in the second quarter compared with 93.4% in the prior-year quarter.
The company witnessed a 17.7% rise in total expense in the second quarter, owing to high net losses and loss adjustment expenses as well as commissions and operating expenses.
The Zacks Consensus Estimate for 2016 moved down 2.6% to $5.00 per share over the last 7 days. For 2017, the same moved down 8.6% to $5.50 per share over the same time frame.
NAVIGATORS GRP Price and Consensus
NAVIGATORS GRP Price and Consensus | NAVIGATORS GRP Quote
Stocks to Consider
Some better-ranked stocks from the P&C industry are Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>