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Bear of the Day: Employers Holdings (EIG)

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When you are looking at a long-term stock to buy, you want to find something where earnings are moving in a positive direction. Stocks have a tendency to move along with earnings, so more earnings should mean more profits for investors. Unfortunately, the opposite also tends to be true. Stocks that see earnings contract typically have a tougher time bringing investors profits.

One way to uncover stocks with earnings growth is by leaning on the Zacks Rank. Stocks with favorable Zacks Ranks have a tendency to have earnings estimates which are moving in a positive direction. Those which are not in the good graces of the ranks tend to have contracting earnings.

Today’s Bear of the Day is a stock which has seen earnings estimates move in a negative direction. I’m talking about Employers Holding (EIG - Free Report) . Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers. 

EIG is currently a Zacks Rank #5 (Strong Sell) in the Insurance – Accident and Health industry which ranks in the Top 47% of our Zacks Industry Rank. The reason for the unfavorable rank is negative earnings estimate revisions coming from analysts. Negative revisions have cut our Zacks Consensus Estimates for the current quarter, next quarter, and current year. The bearish sentiment has dropped our current year consensus from $2.08 to $2.00.

Investors looking for other stocks within the same industry have a couple of Zacks Rank #2 (Buy) stocks to investigate further. Both AMERISAFE (AMSF - Free Report) and Aflac (AFL - Free Report) are Zacks Rank #2 (Buy) stocks.

In-Depth Zacks Research for the Tickers Above

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Aflac Incorporated (AFL) - free report >>

AMERISAFE, Inc. (AMSF) - free report >>

Employers Holdings Inc (EIG) - free report >>

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