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Here's Why Everest Re (RE) Stock is an Attractive Bet Now
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Everest Re Group, Ltd. is well-poised for growth, driven by new business opportunities, higher limited partnership income and higher income from other invested assets.
Growth Projections
The Zacks Consensus Estimate for Everest Re’s 2022 and 2023 earnings per share is pegged at $34.2 and $40.3, indicating a year-over-year increase of 18.2% and 17.6%, respectively. The expected long-term earnings growth rate is 9.9%.
Zacks Rank & Price Performance
Everest Re currently carries a Zacks Rank #2 (Buy). In the past year, RE stock has rallied 5.1% against the industry’s decrease of 7.2%.
Image Source: Zacks Investment Research
Style Score
Everest Re has a favorable VGM Score of A. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Return on Equity
Everest Re’s trailing 12-month return on equity (“ROE”) was 13%, up 890 basis points year over year. ROE reflects its efficiency in using shareholders’ funds.
Business Tailwinds
The solid performance across the Reinsurance and Insurance operation segments of Everest Re is likely to drive revenues in the days ahead.
Increased exposure and new business opportunities with the recovery of the U.S. economy, continued double-digit rate increases, an expanded share on attractive renewals and strong renewal retention are likely to boost the growth of Reinsurance and Insurance operations.
The higher income from a fixed-income portfolio, an increase in the limited partnership income, the higher dividend income from the equity portfolio and increased income from other invested assets are likely to drive net investment income.
The loss and expense ratio is likely to improve, with a continued focus on expense management, renewal rate increases, disciplined execution and intentional portfolio management. This, in turn, will improve the combined ratio of the insurer.
Everest Re should gain from strong profitability, underlying operating cash flow and balance sheet liquidity. Solid operating cash flow should enable the insurer to invest in a rising rate environment.
In May 2022, RE approved a 6.4% hike in its quarterly dividend to return more profits to stockholders. Banking on solid cash flow, the insurer increased dividends at a nine-year CAGR (2014-2022) of 9.2%.
Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance industry are United Fire Group, Inc. (UFCS - Free Report) , RLI Corp. (RLI - Free Report) and American Financial Group, Inc. (AFG - Free Report) . While United Fire and RLI Corp. each sport a Zacks Rank #1 (Strong Buy), American Financial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 270.83%. In the past year, United Fire has rallied 6.8%.
The Zacks Consensus Estimate for UFCS’ 2022 earnings has moved 23.5% north in the past 30 days.
RLI’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 45.89%. In the past year, RLI stock has increased 5.9%.
The Zacks Consensus Estimate for RLI’s 2022 earnings has moved 0.7% north in the past seven days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has rallied 4.6%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 60 days.
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Here's Why Everest Re (RE) Stock is an Attractive Bet Now
Everest Re Group, Ltd. is well-poised for growth, driven by new business opportunities, higher limited partnership income and higher income from other invested assets.
Growth Projections
The Zacks Consensus Estimate for Everest Re’s 2022 and 2023 earnings per share is pegged at $34.2 and $40.3, indicating a year-over-year increase of 18.2% and 17.6%, respectively. The expected long-term earnings growth rate is 9.9%.
Zacks Rank & Price Performance
Everest Re currently carries a Zacks Rank #2 (Buy). In the past year, RE stock has rallied 5.1% against the industry’s decrease of 7.2%.
Image Source: Zacks Investment Research
Style Score
Everest Re has a favorable VGM Score of A. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Return on Equity
Everest Re’s trailing 12-month return on equity (“ROE”) was 13%, up 890 basis points year over year. ROE reflects its efficiency in using shareholders’ funds.
Business Tailwinds
The solid performance across the Reinsurance and Insurance operation segments of Everest Re is likely to drive revenues in the days ahead.
Increased exposure and new business opportunities with the recovery of the U.S. economy, continued double-digit rate increases, an expanded share on attractive renewals and strong renewal retention are likely to boost the growth of Reinsurance and Insurance operations.
The higher income from a fixed-income portfolio, an increase in the limited partnership income, the higher dividend income from the equity portfolio and increased income from other invested assets are likely to drive net investment income.
The loss and expense ratio is likely to improve, with a continued focus on expense management, renewal rate increases, disciplined execution and intentional portfolio management. This, in turn, will improve the combined ratio of the insurer.
Everest Re should gain from strong profitability, underlying operating cash flow and balance sheet liquidity. Solid operating cash flow should enable the insurer to invest in a rising rate environment.
In May 2022, RE approved a 6.4% hike in its quarterly dividend to return more profits to stockholders. Banking on solid cash flow, the insurer increased dividends at a nine-year CAGR (2014-2022) of 9.2%.
Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance industry are United Fire Group, Inc. (UFCS - Free Report) , RLI Corp. (RLI - Free Report) and American Financial Group, Inc. (AFG - Free Report) . While United Fire and RLI Corp. each sport a Zacks Rank #1 (Strong Buy), American Financial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 270.83%. In the past year, United Fire has rallied 6.8%.
The Zacks Consensus Estimate for UFCS’ 2022 earnings has moved 23.5% north in the past 30 days.
RLI’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 45.89%. In the past year, RLI stock has increased 5.9%.
The Zacks Consensus Estimate for RLI’s 2022 earnings has moved 0.7% north in the past seven days.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has rallied 4.6%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 60 days.