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Here's Why You Should Hold on to Argo Group (ARGO) Stock Now
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Argo Group International Holdings’ highly profitable business, growth initiatives, expense initiative program, digitalization and a solid capital position along with favorable growth makes it a stock worth retaining in one’s portfolio.
Argo Group’s earnings have surpassed estimates in each of the trailing four quarters, the average surprise being 954.31%.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 earnings has moved north by 3.8% and 1%, respectively, in the past seven days, reflecting analyst optimism.
Zacks Rank & Price Performance
Argo Group currently carries a Zacks Rank #3 (Hold). Year to date, the stock has lost 30.1%, against the industry’s growth of 17.5%.
Image Source: Zacks Investment Research
Growth Projections
The Zacks Consensus Estimate for 2022 earnings is pegged at $4.38, indicating an improvement of 268.1% from the year-ago reported figure on 2.6% higher revenues of $2.1 billion. The consensus mark for 2023 earnings stands at $4.88, up 11.4% from the year-ago reported figure on 5.1% higher revenues of $2.3 billion.
Business Tailwinds
Argo Group’s highly profitable businesses, Argo Pro, Casualty, Construction, Environmental, Inland Marine and Surety, are well-poised for growth in attractive markets. These businesses together contribute two-thirds of the U.S. premium base.
Exiting reinsurance operations and non-core lines of business, lowering property exposure substantially and reducing volatility bodes well for improving underwriting profitability. ARGO remains focused on investing in areas where it sees immense potential.
This U.S.-focused specialty insurer targets double-digit net earned premium growth and a combined ratio between 92 and 95 in 2022. ARGO anticipates benefiting from the continued rate increase.
Argo Group is on track with its expense initiative program. Lowering headcount, contract review and prioritization, and footprint reduction are aiding it to lower costs. ARGO estimates expense ratio of 36 in 2022.
The company consistently invests in technology to improve operating efficiency and risk selection while reducing overall expenses.
Argo Group anticipates generating an operating return on common equity between 9% and 11% in 2022. ARGO boasts a solid balance sheet with modest financial leverage.
Horace Mann’s earnings surpassed estimates in each of the last four quarters, the average beat being 22.8%. In the past year, HMN has declined 3.3%.
The Zacks Consensus Estimate for 2022 and 2023 earnings has moved 8.3% and 11% north, respectively, in the past 60 days.
Old Republic International’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 38.74%. In the past year, ORI has rallied 19.4%.
The Zacks Consensus Estimate for Old Republic International’s 2022 and 2023 earnings has moved 3.7% and 7.5% north, respectively, in the past 60 days.
The bottom line of CNO Financial surpassed earnings estimates in each of the last four quarters, the average being 25.48%. In the past year, the insurer has gained 5.7%.
The Zacks Consensus Estimate for CNO Financial’s 2022 and 2023 earnings has moved 3% and 2.8% north, respectively, in the past 60 days.
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Here's Why You Should Hold on to Argo Group (ARGO) Stock Now
Argo Group International Holdings’ highly profitable business, growth initiatives, expense initiative program, digitalization and a solid capital position along with favorable growth makes it a stock worth retaining in one’s portfolio.
Argo Group’s earnings have surpassed estimates in each of the trailing four quarters, the average surprise being 954.31%.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2022 and 2023 earnings has moved north by 3.8% and 1%, respectively, in the past seven days, reflecting analyst optimism.
Zacks Rank & Price Performance
Argo Group currently carries a Zacks Rank #3 (Hold). Year to date, the stock has lost 30.1%, against the industry’s growth of 17.5%.
Image Source: Zacks Investment Research
Growth Projections
The Zacks Consensus Estimate for 2022 earnings is pegged at $4.38, indicating an improvement of 268.1% from the year-ago reported figure on 2.6% higher revenues of $2.1 billion. The consensus mark for 2023 earnings stands at $4.88, up 11.4% from the year-ago reported figure on 5.1% higher revenues of $2.3 billion.
Business Tailwinds
Argo Group’s highly profitable businesses, Argo Pro, Casualty, Construction, Environmental, Inland Marine and Surety, are well-poised for growth in attractive markets. These businesses together contribute two-thirds of the U.S. premium base.
Exiting reinsurance operations and non-core lines of business, lowering property exposure substantially and reducing volatility bodes well for improving underwriting profitability. ARGO remains focused on investing in areas where it sees immense potential.
This U.S.-focused specialty insurer targets double-digit net earned premium growth and a combined ratio between 92 and 95 in 2022. ARGO anticipates benefiting from the continued rate increase.
Argo Group is on track with its expense initiative program. Lowering headcount, contract review and prioritization, and footprint reduction are aiding it to lower costs. ARGO estimates expense ratio of 36 in 2022.
The company consistently invests in technology to improve operating efficiency and risk selection while reducing overall expenses.
Argo Group anticipates generating an operating return on common equity between 9% and 11% in 2022. ARGO boasts a solid balance sheet with modest financial leverage.
Stocks to Consider
Some better-ranked insurers are Horace Mann Educators Corporation (HMN - Free Report) , Old Republic International Corporation (ORI - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Horace Mann’s earnings surpassed estimates in each of the last four quarters, the average beat being 22.8%. In the past year, HMN has declined 3.3%.
The Zacks Consensus Estimate for 2022 and 2023 earnings has moved 8.3% and 11% north, respectively, in the past 60 days.
Old Republic International’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 38.74%. In the past year, ORI has rallied 19.4%.
The Zacks Consensus Estimate for Old Republic International’s 2022 and 2023 earnings has moved 3.7% and 7.5% north, respectively, in the past 60 days.
The bottom line of CNO Financial surpassed earnings estimates in each of the last four quarters, the average being 25.48%. In the past year, the insurer has gained 5.7%.
The Zacks Consensus Estimate for CNO Financial’s 2022 and 2023 earnings has moved 3% and 2.8% north, respectively, in the past 60 days.