The Zacks Finance sector has been relatively strong in 2022, down roughly 12% vs. the S&P 500’s decline of 17%.
A company that many are familiar with residing in the sector, W.R. Berkley (WRB - Free Report) , has seen its near-term earnings outlook turn bright over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
W.R. Berkley is one of the nation’s most extensive commercial lines property casualty insurance providers. The company offers various insurance services, from reinsurance to workers’ compensation third-party administrators (TPAs).
Let’s take a deeper dive into how the company currently stacks up.
Share Performance & Valuation
WRB shares have been notably hot year-to-date, tacking on more than 30% in value and crushing the S&P 500’s performance.
And over the last three months, WRB shares have continued on their market-beating trajectory, up nearly 9%.
The favorable price action of WRB shares in 2022 indicates that buyers have been consistently present, something we can’t say for the majority of stocks in a historically-volatile 2022.
Shares currently trade at a 16.8X forward earnings multiple, nicely beneath the 20.2X five-year median and highs of 21.5X in 2021.
W.R. Berkley sports a Style Score of a B for Value.
Growth Outlook
W.R. Berkley’s growth projections are hard to ignore, with earnings forecasted to climb a double-digit 26% in FY22 and a further 10.5% in FY23.
The projected earnings growth comes on top of forecasted Y/Y revenue growth of 16% and 10.3% in FY22 and FY23, respectively.
Dividends
For those who like income, the company pays out a small dividend; WRB’s annual dividend yield comes in at 0.5%, lower than its Zacks Finance sector average.
While the 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 robust 9.8% five-year annualized dividend growth rate.
Quarterly Performance
WRB has impressed with its quarterly results as of late, exceeding both the Zacks Consensus EPS and Sales Estimates in back-to-back quarters.
In its latest release, the company penciled in a sizable 23.2% bottom-line beat paired with a 2.7% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
W.R. Berkley (WRB - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
The Zacks Finance sector has been relatively strong in 2022, down roughly 12% vs. the S&P 500’s decline of 17%.
A company that many are familiar with residing in the sector, W.R. Berkley (WRB - Free Report) , has seen its near-term earnings outlook turn bright over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
W.R. Berkley is one of the nation’s most extensive commercial lines property casualty insurance providers. The company offers various insurance services, from reinsurance to workers’ compensation third-party administrators (TPAs).
Let’s take a deeper dive into how the company currently stacks up.
Share Performance & Valuation
WRB shares have been notably hot year-to-date, tacking on more than 30% in value and crushing the S&P 500’s performance.
And over the last three months, WRB shares have continued on their market-beating trajectory, up nearly 9%.
The favorable price action of WRB shares in 2022 indicates that buyers have been consistently present, something we can’t say for the majority of stocks in a historically-volatile 2022.
Shares currently trade at a 16.8X forward earnings multiple, nicely beneath the 20.2X five-year median and highs of 21.5X in 2021.
W.R. Berkley sports a Style Score of a B for Value.
Growth Outlook
W.R. Berkley’s growth projections are hard to ignore, with earnings forecasted to climb a double-digit 26% in FY22 and a further 10.5% in FY23.
The projected earnings growth comes on top of forecasted Y/Y revenue growth of 16% and 10.3% in FY22 and FY23, respectively.
Dividends
For those who like income, the company pays out a small dividend; WRB’s annual dividend yield comes in at 0.5%, lower than its Zacks Finance sector average.
While the 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 robust 9.8% five-year annualized dividend growth rate.
Quarterly Performance
WRB has impressed with its quarterly results as of late, exceeding both the Zacks Consensus EPS and Sales Estimates in back-to-back quarters.
In its latest release, the company penciled in a sizable 23.2% bottom-line beat paired with a 2.7% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
W.R. Berkley (WRB - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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