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Why Should You Hold Axis Capital (AXS) in Your Portfolio?
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AXIS Capital Holdings Limited (AXS - Free Report) has been gaining momentum given the company's new business, favorable rate changes, improved underwriting income and solid liquidity.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $4.20 and $4.80, indicating a respective increase of 301.92% and 14.21% from the corresponding year-ago reported figures.
Estimate Revision
The Zacks Consensus Estimate for 2021 and 2022 earnings has moved 16.3% and 6.2% north, respectively in the past 60 days. This should instill investors' confidence in the stock.
Earnings Surprise History
AXIS Capital has a decent earnings surprise history. Its bottom-line beat estimates in each of the last four quarters, the average being 34.5%.
Zacks Rank & Price Performance
AXIS Capital currently carries a Zacks Rank #3 (Hold). However, in the past year, the stock has rallied 25.6% compared with the industry’s increase of 41.6%. Nevertheless, its consistent efforts to build on its Specialty Insurance, Reinsurance plus Accident and Health should help the stock bounce back.
Image Source: Zacks Investment Research
Style Score
The company has a favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
AXIS Capital is steadily witnessing a positive trend in net premiums earned, driven by premium growth at both its Insurance and Reinsurance segments.
Given new business and favorable rate changes in the professional lines, property, marine and liability lines, premium income at the Insurance segment is likely to witness growth in the long term. Also, riding on the company’s growing underwriting income, its combined ratio is improving.
Reinsurance segment is expected to benefit from increases in accident and health, motor, catastrophe, and credit and surety lines as well as increases in liability and professional lines owing to premium adjustments, primarily related to favorable market conditions.
Despite the currently low interest rate environment, higher income from fixed maturities, a larger allocation of the portfolio to fixed maturities and a rise in returns from alternative investments will continue to drive net investment income, which in turn, will contribute to top-line growth of the insurer.
AXIS Capital continues to witness rate increases across its Insurance and Reinsurance segments.
Lower level of catastrophe and weather-related losses, an improved pricing over loss trends and changes in business mix plus an improved loss experienced in accident and health, agriculture and engineering lines are expected to result in better loss ratios coupled with greater stability.
The company’s solvency level is impressive as well.
The company has hikes dividend for 17th consecutive year and boasts one of the highest dividends yields among its peers. Its current dividend yield of 3.4% is higher than the industry average of 0.4%, which makes the stock an attractive pick for yield-seeking investors.
The bottom line of HCI Group surpassed estimates in three of the last four quarters and missed the mark in the remaining one, the average beat being 42.91%.
Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters, missing the mark on a single occasion, the average surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Shutterstock
Why Should You Hold Axis Capital (AXS) in Your Portfolio?
AXIS Capital Holdings Limited (AXS - Free Report) has been gaining momentum given the company's new business, favorable rate changes, improved underwriting income and solid liquidity.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $4.20 and $4.80, indicating a respective increase of 301.92% and 14.21% from the corresponding year-ago reported figures.
Estimate Revision
The Zacks Consensus Estimate for 2021 and 2022 earnings has moved 16.3% and 6.2% north, respectively in the past 60 days. This should instill investors' confidence in the stock.
Earnings Surprise History
AXIS Capital has a decent earnings surprise history. Its bottom-line beat estimates in each of the last four quarters, the average being 34.5%.
Zacks Rank & Price Performance
AXIS Capital currently carries a Zacks Rank #3 (Hold). However, in the past year, the stock has rallied 25.6% compared with the industry’s increase of 41.6%. Nevertheless, its consistent efforts to build on its Specialty Insurance, Reinsurance plus Accident and Health should help the stock bounce back.
Style Score
The company has a favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
AXIS Capital is steadily witnessing a positive trend in net premiums earned, driven by premium growth at both its Insurance and Reinsurance segments.
Given new business and favorable rate changes in the professional lines, property, marine and liability lines, premium income at the Insurance segment is likely to witness growth in the long term. Also, riding on the company’s growing underwriting income, its combined ratio is improving.
Reinsurance segment is expected to benefit from increases in accident and health, motor, catastrophe, and credit and surety lines as well as increases in liability and professional lines owing to premium adjustments, primarily related to favorable market conditions.
Despite the currently low interest rate environment, higher income from fixed maturities, a larger allocation of the portfolio to fixed maturities and a rise in returns from alternative investments will continue to drive net investment income, which in turn, will contribute to top-line growth of the insurer.
AXIS Capital continues to witness rate increases across its Insurance and Reinsurance segments.
Lower level of catastrophe and weather-related losses, an improved pricing over loss trends and changes in business mix plus an improved loss experienced in accident and health, agriculture and engineering lines are expected to result in better loss ratios coupled with greater stability.
The company’s solvency level is impressive as well.
The company has hikes dividend for 17th consecutive year and boasts one of the highest dividends yields among its peers. Its current dividend yield of 3.4% is higher than the industry average of 0.4%, which makes the stock an attractive pick for yield-seeking investors.
Stocks to Consider
Some better-ranked insurance stocks from the same space are HCI Group, Inc. (HCI - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and Alleghany Corporation , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of HCI Group surpassed estimates in three of the last four quarters and missed the mark in the remaining one, the average beat being 42.91%.
Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters, missing the mark on a single occasion, the average surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>