We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Invest in Everest Re (RE) Stock Now
Read MoreHide Full Article
Everest Re Group, Ltd. is well-poised for growth, driven by business opportunities, rising 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 $34.8 and $39.3, indicating year-over-year increases of 20.1% and 13%, 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, the RE stock has rallied 14.4% against the industry’s decline of 5.6%.
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
Everest Re is witnessing a positive trend in net premiums earned and net investment income, driven by solid performance across its Reinsurance and Insurance operations segments.
Increased exposure and 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 growth of Reinsurance and Insurance operations.
Higher income from a fixed-income portfolio, an increase in the limited partnership income, higher dividend income from the equity portfolio and increased income from other invested assets are likely to drive the 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. Banking on strong premium growth, operating cash flow is likely to improve.
Everest Re boasts a consistent increase in dividends, with the metric witnessing a nine-year CAGR (2014-2022) of 9.2%. The current dividend yield of 2.4% betters the industry average of 0.4%, making the stock an attractive pick for yield-seeking investors.
Arch Capital’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 30.7%. In the past year, Arch Capital’s stock has gained 18.8%.
The Zacks Consensus Estimate for ACGL’s 2022 and 2023 earnings per share indicates year-over-year increases of 20.9% and 17.4%, respectively.
Axis Capital’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 54.8%. In the past year, the AXS stock has gained 11.2%.
The Zacks Consensus Estimate for Axis Capital’s 2022 and 2023 earnings per share indicates year-over-year increases of 23.6% and 6.2%, respectively.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 270.8%. In the past year, UFCS's stock has gained 41.7%.
The Zacks Consensus Estimate for UFCS’s 2022 earnings has moved 23.5% north in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Invest in Everest Re (RE) Stock Now
Everest Re Group, Ltd. is well-poised for growth, driven by business opportunities, rising 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 $34.8 and $39.3, indicating year-over-year increases of 20.1% and 13%, 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, the RE stock has rallied 14.4% against the industry’s decline of 5.6%.
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
Everest Re is witnessing a positive trend in net premiums earned and net investment income, driven by solid performance across its Reinsurance and Insurance operations segments.
Increased exposure and 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 growth of Reinsurance and Insurance operations.
Higher income from a fixed-income portfolio, an increase in the limited partnership income, higher dividend income from the equity portfolio and increased income from other invested assets are likely to drive the 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. Banking on strong premium growth, operating cash flow is likely to improve.
Everest Re boasts a consistent increase in dividends, with the metric witnessing a nine-year CAGR (2014-2022) of 9.2%. The current dividend yield of 2.4% betters the industry average of 0.4%, making the stock an attractive pick for yield-seeking investors.
Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance industry are Arch Capital Group Ltd. (ACGL - Free Report) , Axis Capital Holdings Limited (AXS - Free Report) and United Fire Group, Inc. (UFCS - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arch Capital’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 30.7%. In the past year, Arch Capital’s stock has gained 18.8%.
The Zacks Consensus Estimate for ACGL’s 2022 and 2023 earnings per share indicates year-over-year increases of 20.9% and 17.4%, respectively.
Axis Capital’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 54.8%. In the past year, the AXS stock has gained 11.2%.
The Zacks Consensus Estimate for Axis Capital’s 2022 and 2023 earnings per share indicates year-over-year increases of 23.6% and 6.2%, respectively.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 270.8%. In the past year, UFCS's stock has gained 41.7%.
The Zacks Consensus Estimate for UFCS’s 2022 earnings has moved 23.5% north in the past 60 days.