Back to top

Bull of the Day: Erie Indemnity (ERIE)

Read MoreHide Full Article

Erie Indemnity (ERIE - Free Report) , a current Zacks Rank #1 (Strong Buy), issues, renews, and underwrites insurance products for personal liability, property, boat, recreational vehicles, home, flood, and auto. The company’s earnings outlook is notably bullish across all timeframes.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition to favorable earnings estimate revisions, the stock resides in the Zacks Insurance – Brokerage industry, currently ranked in the top 4% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.

ERIE Reports Strong Growth

Since becoming a Zacks Rank #1 (Strong Buy) on July 30th, ERIE shares have gained nearly 20%, widely outperforming relative to the S&P 500. Favorable quarterly results have helped the stock all year long in general, up 60% on a YTD basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Income-focused investors could find ERIE shares attractive, with the company currently sporting a shareholder-friendly 7.4% five-year annualized dividend growth rate paired with a sustainable payout ratio sitting at 50% of its earnings.

While the current yield has been pushed down by strong share performance, the company’s dividend growth can’t be overlooked.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares got a nice boost following its latest set of quarterly results, with the company posting 40% earnings growth on 18% higher sales. Earnings results have regularly exceeded our expectations, with the company beating the Zacks Consensus EPS estimate by an average of 12% across its last four releases.

Below is a chart illustrating the company’s sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

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.

Erie Indemnity (ERIE - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Erie Indemnity Company (ERIE) - free report >>

Published in