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.
Should You Buy Everest Group (EG) for Better Returns Now?
Read MoreHide Full Article
Everest Group, Ltd. (EG - Free Report) is well-poised to grow from new business growth, favorable estimates, strong renewal retention, strategic partnerships, prudent capital deployment and a solid capital position.
Growth Projections
The Zacks Consensus Estimate for Everest Group’s 2023 earnings is pegged at $47.75 per share, indicating a 76.3% increase from the year-ago reported figure on 18.3% higher revenues of $14.82 billion. The consensus estimate for 2024 earnings is pegged at $57.91 per share, indicating a 21.2% increase from the year-ago reported figure on 13.6% higher revenues of $16.83 billion.
The expected long-term earnings growth rate is 30.5%, which is better than the industry average of 12.5%.
Northbound Estimate Revision
The Zacks Consensus Estimate for EG’s 2023 and 2024 earnings has moved 0.06% and 0.05% north, respectively, in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
EG surpassed earnings estimates in three of the last four quarters and missed in one, the average being 17.36%.
Zacks Rank & Price Performance
Everest Group currently carries a Zacks Rank #2 (Buy). In the past year, the stock has gained 34.6%, outperforming the industry’s growth of 4.2%.
Image Source: Zacks Investment Research
Return on Equity
Everest Group’s return on equity for the trailing 12 months is 14.9%, which expanded 350 basis points year over year and compared favorably with the industry average of 10.5%. This reflects its efficiency in utilizing its shareholders’ funds.
Style Score
The insurer has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities in the value investing space.
Business Tailwinds
Everest Group focuses on having a mix of product lines with better rate adequacy and higher long-term margins. Its diversified income streams ensure profitability. EG remains focused on lowering its volatility and is well-poised to capitalize on market opportunities. To that end, the insurer increased its local primary insurance presence in Asia, Latin America and Europe. The insurer estimates gross written premium to witness a three-year CAGR of 10-15%.
New business growth, strong renewal retention and continued favorable rate increases should benefit the Insurance segment. EG estimates gross written premium at this segment to record a three-year CAGR of 18-22%.
Strategic partnerships with core clients and its position as a preferred reinsurance partner poise the Reinsurance segment well for growth. EG estimates gross written premium at this segment to witness a three-year CAGR of 8-12%.
This property and casualty insurer has a strong capital position with sufficient cash generation capabilities. The company continues to benefit from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities.
These, in turn, help in deploying capital for organic growth as well as pursuing strategic acquisitions apart from buying back shares and paying out dividends.
The company targets return on invested assets between 2.75% and 3.25%, while the long-term debt leverage ratio is projected between 15% and 20%.
EG also has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Attractive Valuation
Everest Group shares are trading at a price to book value multiple of 1.35, which is lower than the industry average of 2.37. It also has an impressive Value Score of A. This style score helps find the most attractive value stocks.
Lemonade’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 10.57%.
The Zacks Consensus Estimate for LMND’s 2023 and 2024 earnings implies 20.9% and 16% year-over-year growth, respectively. In the past year, the insurer has lost 51.4%.
American International earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 13.45%.
The Zacks Consensus Estimate for AIG’s 2023 and 2024 earnings implies 47.9% and 19.6% year-over-year growth, respectively. In the past year, the insurer has gained 16.2%.
MGIC Investment earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 23.59%.
The Zacks Consensus Estimate for MTG’s 2023 and 2024 earnings implies 0.5% and 6.4% year-over-year growth, respectively. In the past year, the insurer has gained 20.4%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Should You Buy Everest Group (EG) for Better Returns Now?
Everest Group, Ltd. (EG - Free Report) is well-poised to grow from new business growth, favorable estimates, strong renewal retention, strategic partnerships, prudent capital deployment and a solid capital position.
Growth Projections
The Zacks Consensus Estimate for Everest Group’s 2023 earnings is pegged at $47.75 per share, indicating a 76.3% increase from the year-ago reported figure on 18.3% higher revenues of $14.82 billion. The consensus estimate for 2024 earnings is pegged at $57.91 per share, indicating a 21.2% increase from the year-ago reported figure on 13.6% higher revenues of $16.83 billion.
The expected long-term earnings growth rate is 30.5%, which is better than the industry average of 12.5%.
Northbound Estimate Revision
The Zacks Consensus Estimate for EG’s 2023 and 2024 earnings has moved 0.06% and 0.05% north, respectively, in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
EG surpassed earnings estimates in three of the last four quarters and missed in one, the average being 17.36%.
Zacks Rank & Price Performance
Everest Group currently carries a Zacks Rank #2 (Buy). In the past year, the stock has gained 34.6%, outperforming the industry’s growth of 4.2%.
Image Source: Zacks Investment Research
Return on Equity
Everest Group’s return on equity for the trailing 12 months is 14.9%, which expanded 350 basis points year over year and compared favorably with the industry average of 10.5%. This reflects its efficiency in utilizing its shareholders’ funds.
Style Score
The insurer has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities in the value investing space.
Business Tailwinds
Everest Group focuses on having a mix of product lines with better rate adequacy and higher long-term margins. Its diversified income streams ensure profitability. EG remains focused on lowering its volatility and is well-poised to capitalize on market opportunities. To that end, the insurer increased its local primary insurance presence in Asia, Latin America and Europe. The insurer estimates gross written premium to witness a three-year CAGR of 10-15%.
New business growth, strong renewal retention and continued favorable rate increases should benefit the Insurance segment. EG estimates gross written premium at this segment to record a three-year CAGR of 18-22%.
Strategic partnerships with core clients and its position as a preferred reinsurance partner poise the Reinsurance segment well for growth. EG estimates gross written premium at this segment to witness a three-year CAGR of 8-12%.
This property and casualty insurer has a strong capital position with sufficient cash generation capabilities. The company continues to benefit from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities.
These, in turn, help in deploying capital for organic growth as well as pursuing strategic acquisitions apart from buying back shares and paying out dividends.
The company targets return on invested assets between 2.75% and 3.25%, while the long-term debt leverage ratio is projected between 15% and 20%.
EG also has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Attractive Valuation
Everest Group shares are trading at a price to book value multiple of 1.35, which is lower than the industry average of 2.37. It also has an impressive Value Score of A. This style score helps find the most attractive value stocks.
Other Stocks to Consider
Some other top-ranked stocks from the multi-line insurance industry are Lemonade, Inc. (LMND - Free Report) , American International Group, Inc. (AIG - Free Report) and MGIC Investment Corporation (MTG - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lemonade’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 10.57%.
The Zacks Consensus Estimate for LMND’s 2023 and 2024 earnings implies 20.9% and 16% year-over-year growth, respectively. In the past year, the insurer has lost 51.4%.
American International earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 13.45%.
The Zacks Consensus Estimate for AIG’s 2023 and 2024 earnings implies 47.9% and 19.6% year-over-year growth, respectively. In the past year, the insurer has gained 16.2%.
MGIC Investment earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 23.59%.
The Zacks Consensus Estimate for MTG’s 2023 and 2024 earnings implies 0.5% and 6.4% year-over-year growth, respectively. In the past year, the insurer has gained 20.4%.