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W.R. Berkley (WRB) Hits 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of W.R. Berkley (WRB - Free Report) ? Shares have been on the move with the stock up 11.5% over the past month. The stock hit a new 52-week high of $82.76 in the previous session. W.R. Berkley has gained 23.4% since the start of the year compared to the 25.6% move for the Zacks Finance sector and the 22.1% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 21, 2021, W.R. Berkley reported EPS of $1.32 versus consensus estimate of $0.94.
Valuation Metrics
W.R. Berkley may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
W.R. Berkley has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 25.4X versus its peer group's average of 15.5X. Additionally, the stock has a PEG ratio of 1.89. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, W.R. Berkley currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if W.R. Berkley fits the bill. Thus, it seems as though W.R. Berkley shares could have potential in the weeks and months to come.
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W.R. Berkley (WRB) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of W.R. Berkley (WRB - Free Report) ? Shares have been on the move with the stock up 11.5% over the past month. The stock hit a new 52-week high of $82.76 in the previous session. W.R. Berkley has gained 23.4% since the start of the year compared to the 25.6% move for the Zacks Finance sector and the 22.1% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 21, 2021, W.R. Berkley reported EPS of $1.32 versus consensus estimate of $0.94.
Valuation Metrics
W.R. Berkley may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
W.R. Berkley has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 25.4X versus its peer group's average of 15.5X. Additionally, the stock has a PEG ratio of 1.89. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, W.R. Berkley currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if W.R. Berkley fits the bill. Thus, it seems as though W.R. Berkley shares could have potential in the weeks and months to come.