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Kinsale Capital Group, Inc. (KNSL) Soars 8.1%: Is Further Upside Left in the Stock?

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Kinsale Capital Group, Inc. (KNSL - Free Report) shares ended the last trading session 8.1% higher at $337.65. 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 2.8% loss over the past four weeks.

Solid Excess & Surplus market, strong premium growth, low expense ratio, higher margins and prudent capital deployment continue to drive the stock.

The combination of highly controlled underwriting combined with advanced technology-driven low costs and a focus on the Excess and Surplus Lines Insurance market is driving the profitability and growth of Kinsale Capital.

The Excess and Surplus Lines insurance segment continues to witness rapid growth owing to dislocation in the overall property and casualty market.

The expense ratio is expected to gain from lower net commissions incurred and lower other underwriting expenses as a percentage of earned premiums, economies of scale from premium expansion and management's continued focus on controlling costs.

This company is expected to post quarterly earnings of $2.50 per share in its upcoming report, which represents a year-over-year change of +30.2%. Revenues are expected to be $272.73 million, up 52.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Kinsale Capital Group, Inc., 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 KNSL 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 >>>>

Kinsale Capital Group, Inc. is a member of the Zacks Insurance - Property and Casualty industry. One other stock in the same industry, Progressive (PGR - Free Report) , finished the last trading session 0.9% higher at $129.50. PGR has returned 1.8% over the past month.

Progressive's consensus EPS estimate for the upcoming report has changed -16.5% over the past month to $1.19. Compared to the company's year-ago EPS, this represents a change of +25.3%. Progressive currently boasts a Zacks Rank of #3 (Hold).

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