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Markel (MKL) Hits 52-Week High: Can the Bull Run Continue?
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Shares of Markel Corporation (MKL - Free Report) hit a new 52-week high of $1,228.32 on Aug 21, gaining traction from strong second-quarter 2018 earnings. The stock finally closed at $1,217.89, gaining 0.5%. The stock has rallied 15.8% in a year, outperforming the industry’s increase of 13%.
Strong Q2 Results
Markel’s bottom line of $19.97 outpaced the Zacks Consensus Estimate by 135.2% and more than doubled year over year on higher revenues and improved premiums at the Insurance segment.
The top line also improved 28.6% year over year on higher premiums, investment income and other revenues.
Debt balance dipped 2.4% from the level at 2017 end.
Shares of the company have inched up 1.3% since it posted strong second-quarter results. This Zacks Rank #3 (Hold) property and casualty insurer delivered a back-to-back surprise.
Why Should the Stock Continue the Bull Run?
Markel is poised to grow, given its operational excellence at insurance, investments and Markel ventures. Better performing general liability and personal lines should continue to boost the company’s U.S. operations.
In its Markel venture, the company will be investing in the ownership of the best of asset management firms. It also announced to invest about $200 million in the Markel CATCo funds.
The company’s niche focus, effective management of insurance risk and a focus on developing and maintaining underwriting as well as pricing guidelines on existing products plus new product development should drive the stock’s results.
Markel has a favorable Growth Score of B. Growth Score analyzes the company’s growth prospects and also evaluates its corporate financial statements. Studies have shown that stocks exhibiting the best growth characteristics consistently outperform the market.
The Zacks Consensus Estimate for 2018 reflects a staggering 977.9% increase on 14.6% higher revenues. Over the past 30 days, the consensus estimate has been moved 1.9% north for 2018 and 0.1% up for 2019.
Arch Capital provides property, casualty and mortgage insurance and reinsurance products worldwide. It delivered a 13.46% positive surprise in the earlier reported quarter.
American Financial provides property and casualty insurance products in the United States. Last reported quarter, it pulled off an 8.51% earnings surprise.
Berkshire Hathaway engages in insurance, freight rail transportation and utility businesses. It came up with a 22.91% beat in the previously reported quarter.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Markel (MKL) Hits 52-Week High: Can the Bull Run Continue?
Shares of Markel Corporation (MKL - Free Report) hit a new 52-week high of $1,228.32 on Aug 21, gaining traction from strong second-quarter 2018 earnings. The stock finally closed at $1,217.89, gaining 0.5%. The stock has rallied 15.8% in a year, outperforming the industry’s increase of 13%.
Strong Q2 Results
Markel’s bottom line of $19.97 outpaced the Zacks Consensus Estimate by 135.2% and more than doubled year over year on higher revenues and improved premiums at the Insurance segment.
The top line also improved 28.6% year over year on higher premiums, investment income and other revenues.
Debt balance dipped 2.4% from the level at 2017 end.
Shares of the company have inched up 1.3% since it posted strong second-quarter results. This Zacks Rank #3 (Hold) property and casualty insurer delivered a back-to-back surprise.
Why Should the Stock Continue the Bull Run?
Markel is poised to grow, given its operational excellence at insurance, investments and Markel ventures. Better performing general liability and personal lines should continue to boost the company’s U.S. operations.
In its Markel venture, the company will be investing in the ownership of the best of asset management firms. It also announced to invest about $200 million in the Markel CATCo funds.
The company’s niche focus, effective management of insurance risk and a focus on developing and maintaining underwriting as well as pricing guidelines on existing products plus new product development should drive the stock’s results.
Markel has a favorable Growth Score of B. Growth Score analyzes the company’s growth prospects and also evaluates its corporate financial statements. Studies have shown that stocks exhibiting the best growth characteristics consistently outperform the market.
The Zacks Consensus Estimate for 2018 reflects a staggering 977.9% increase on 14.6% higher revenues. Over the past 30 days, the consensus estimate has been moved 1.9% north for 2018 and 0.1% up for 2019.
Stocks to Consider
Some better-ranked property and casualty insurers are Arch Capital Group Ltd. (ACGL - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Berkshire Hathaway Inc. (BRK.B - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arch Capital provides property, casualty and mortgage insurance and reinsurance products worldwide. It delivered a 13.46% positive surprise in the earlier reported quarter.
American Financial provides property and casualty insurance products in the United States. Last reported quarter, it pulled off an 8.51% earnings surprise.
Berkshire Hathaway engages in insurance, freight rail transportation and utility businesses. It came up with a 22.91% beat in the previously reported quarter.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>