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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).
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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).
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Bull of the Day: W.R. Berkley Corp. (WRB)
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).
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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).