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Strength Seen in Markel (MKL): Can Its 4.1% Jump Turn into More Strength?
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Markel (MKL - Free Report) shares ended the last trading session 4.1% higher at $1,355.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.8% gain over the past four weeks.
Markel’s premium improvement should continue to be driven by solid growth in new business and favorable pricing trends across most of the product lines. MKL stands to benefit from its niche focus and effective management of insurance risk.
The favorable impact of higher earned premiums as well as lower compensation and general expenses across both the Insurance and Reinsurance segments are likely to improve the expense ratio of Markel.
The combined ratio should continue to benefit from a lower attritional loss ratio, favorable pricing environment and the impact of underwriting actions taken to enhance profitability.
This insurer is expected to post quarterly earnings of $16.77 per share in its upcoming report, which represents a year-over-year change of +65.7%. Revenues are expected to be $2.71 billion, up 14.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Markel, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MKL going forward to see if this recent jump can turn into more strength down the road.
Markel belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Root, Inc. (ROOT - Free Report) , closed the last trading session 8.2% lower at $1.41. Over the past month, ROOT has returned -10.5%.
Root, Inc.'s consensus EPS estimate for the upcoming report has changed +6% over the past month to -$0.40. Compared to the company's year-ago EPS, this represents no change. Root, Inc. currently boasts a Zacks Rank of #3 (Hold).
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Strength Seen in Markel (MKL): Can Its 4.1% Jump Turn into More Strength?
Markel (MKL - Free Report) shares ended the last trading session 4.1% higher at $1,355.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.8% gain over the past four weeks.
Markel’s premium improvement should continue to be driven by solid growth in new business and favorable pricing trends across most of the product lines. MKL stands to benefit from its niche focus and effective management of insurance risk.
The favorable impact of higher earned premiums as well as lower compensation and general expenses across both the Insurance and Reinsurance segments are likely to improve the expense ratio of Markel.
The combined ratio should continue to benefit from a lower attritional loss ratio, favorable pricing environment and the impact of underwriting actions taken to enhance profitability.
This insurer is expected to post quarterly earnings of $16.77 per share in its upcoming report, which represents a year-over-year change of +65.7%. Revenues are expected to be $2.71 billion, up 14.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Markel, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MKL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Markel belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Root, Inc. (ROOT - Free Report) , closed the last trading session 8.2% lower at $1.41. Over the past month, ROOT has returned -10.5%.
Root, Inc.'s consensus EPS estimate for the upcoming report has changed +6% over the past month to -$0.40. Compared to the company's year-ago EPS, this represents no change. Root, Inc. currently boasts a Zacks Rank of #3 (Hold).