Markel Corporation ( MKL Quick Quote MKL - Free Report) has been favored by investors on the back of its new business opportunities, improved pricing, acquisitions and solid liquidity. Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $58.06 and $65.58, indicating year-over-year increase of nearly 121.2% and 12.9%, respectively.
Earnings Surprise History
Markel surpassed estimates in each of the last four reported quarters, with the average beat being 164%.
Zacks Rank & Price Performance
Markel currently carries a Zacks Rank #1 (Strong Buy). In the past year, the stock has rallied 18.6% compared with the
industry’s increase of 28.3%. Style Score
It has an impressive
Growth Score of A. This style score helps analyze the growth prospects of a company. Business Tailwinds
By virtue of new business and improved pricing within its professional liability and general liability product lines, as well as its personal lines and marine and energy product lines across its Insurance segment, premium growth of the insurer is likely to improve in the near term. This in turn will contribute to the top-line growth of the company. The Zacks Consensus Estimate for the company’s 2021 and 2022 revenues is pegged at $10.1 billion and $10.9 billion, indicating year-over-year increase of nearly 10.8% and 8.3%, respectively.
Markel Ventures operations witnessed strong top and bottom-line performance amid challenging economic conditions and achieved solid investment returns despite volatile market conditions and historically low interest rates. Banking on the acquisition of Lansing Building Products and VSC Fire & Securityas well as growth and improved operating results at certain of its businesses, revenues and EBITDA for Markel Ventures segment are likely to improve. Moreover, the solvency position of this property and casualty insurer looks strong. Its cash flow from operations increased 30.8% year over year in 2020 while cash balance improved 11.6% from 2019-end level. The insurer seeks to maintain modest financial leverage. Its debt-to-capital ratio improved 300 basis points (bps) at 2020 end and has access to $300 million revolving credit facility. Based on solid cash generation abilities, it has committed to enhancing shareholder value through share buybacks. At present, it has $240.8 million remaining under the share repurchase authorization. Other Stocks to Consider
Some other top-ranked stocks in the insurance space include
Alleghany ( Y Quick Quote Y - Free Report) , Cincinnati Financial Corporation ( CINF Quick Quote CINF - Free Report) and First American Financial Corporation ( FAF Quick Quote FAF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alleghany’s bottom line surpassed estimates in two of the last four quarters and missed in the other two, the average beat being 34.08%. Cincinnati Financial surpassed earnings estimates in two of the last four quarters, with the average surprise being 4.10%. First American Financial’s bottom line surpassed estimates in three of the last four quarters and missed in one, the average beat being 15.86%. Zacks Names “Single Best Pick to Double”
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