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.
RLI Stock Rises 21.4% in the Past Year: Will the Rally Last?
Read MoreHide Full Article
Shares of RLI Corp. (RLI - Free Report) have gained 21.4% in the past year, outperforming the industry's rise of 17.9%. The Zacks S&P 500 composite has increased 16.7% in the said time frame. With a market capitalization of $6.24 billion, the average volume of shares traded in the last three months was 0.2 million.
Image Source: Zacks Investment Research
The rally was largely driven by a compelling product portfolio, rate increases, improved retention, higher premium receipts and sufficient liquidity.
This Zacks Rank #3 (Hold) insurer’s return on equity was 53.1% in the second quarter versus -6.1% in the year-ago quarter.
RLI has a decent earnings surprise history. It beat estimates in three of the last four quarters and missed in one, the average being 31.14%.
Will the Bull Run Continue?
The Zacks Consensus Estimate for RLI’s 2024 earnings is pegged at $5.49 per share, indicating a 22.9% increase from the year-ago reported figure on 12.5% higher revenues of $1.63 billion.
The Zacks Consensus Estimate for 2024 has moved 0.7% north in the past 30 days. This should instill investors' confidence in the stock.
Premium, the main source of RLI’s revenues, is expected to gain from solid performance in the Property and Surety segments.
Product diversification across the Casualty, Property and Surety segments of the company has fueled the insurer’s growth and financial success. The Casualty segment continues to gain from an expanded distribution base in personal umbrella and rate increases.
The commercial property business has been gaining from higher wind and earthquake exposure rates. Rate increases, improved retention and new opportunities in the inland marine space should benefit marine products.
The Surety segment continues to benefit from its compelling product portfolio, growth within existing accounts and writing of bonds with new customers. Building materials inflation and new accounts will aid commercial and contract surety businesses in the future. RLI boasts solid operating results and its financial position remained strong. Operating cash flows should gain from higher premium receipts.
RLI will keep investing in customer relationships, technology and people to grow underwriting profits in the future.
The company has been paying dividends for 187 consecutive quarters and increased regular dividends in each of the last 48 years. Its dividend yield is currently 0.7%, which is higher than the industry’s average of 0.3%. Over the last 10 years, the insurer has returned $1.37 billion to shareholders and the quarterly dividend has grown an average of 5% per year.
Arch Capital has a decent history of delivering earnings surprises in the last four quarters, the average being 26.83%. In the past year, ACGL has rallied 78.2%.
The Zacks Consensus Estimate for ACGL’s 2023 and 2024 earnings has moved 0.7% and 1.4% north, respectively, in the past seven days, reflecting analysts’ optimism.
Kinsale Capital beat estimates in each of the last four quarters, the average being 14.88%. In the past year, KNSL has soared 60.1%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings has moved 0.6% and 1% north, respectively, in the past seven days, reflecting analysts’ optimism.
Cincinnati Financial has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 25.25%. In the past year, CINF has gained 2.8%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5 and $5.88, indicating a year-over-year increase of 17.9% and 17.6%, respectively.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
RLI Stock Rises 21.4% in the Past Year: Will the Rally Last?
Shares of RLI Corp. (RLI - Free Report) have gained 21.4% in the past year, outperforming the industry's rise of 17.9%. The Zacks S&P 500 composite has increased 16.7% in the said time frame. With a market capitalization of $6.24 billion, the average volume of shares traded in the last three months was 0.2 million.
Image Source: Zacks Investment Research
The rally was largely driven by a compelling product portfolio, rate increases, improved retention, higher premium receipts and sufficient liquidity.
This Zacks Rank #3 (Hold) insurer’s return on equity was 53.1% in the second quarter versus -6.1% in the year-ago quarter.
RLI has a decent earnings surprise history. It beat estimates in three of the last four quarters and missed in one, the average being 31.14%.
Will the Bull Run Continue?
The Zacks Consensus Estimate for RLI’s 2024 earnings is pegged at $5.49 per share, indicating a 22.9% increase from the year-ago reported figure on 12.5% higher revenues of $1.63 billion.
The Zacks Consensus Estimate for 2024 has moved 0.7% north in the past 30 days. This should instill investors' confidence in the stock.
Premium, the main source of RLI’s revenues, is expected to gain from solid performance in the Property and Surety segments.
Product diversification across the Casualty, Property and Surety segments of the company has fueled the insurer’s growth and financial success. The Casualty segment continues to gain from an expanded distribution base in personal umbrella and rate increases.
The commercial property business has been gaining from higher wind and earthquake exposure rates. Rate increases, improved retention and new opportunities in the inland marine space should benefit marine products.
The Surety segment continues to benefit from its compelling product portfolio, growth within existing accounts and writing of bonds with new customers. Building materials inflation and new accounts will aid commercial and contract surety businesses in the future. RLI boasts solid operating results and its financial position remained strong. Operating cash flows should gain from higher premium receipts.
RLI will keep investing in customer relationships, technology and people to grow underwriting profits in the future.
The company has been paying dividends for 187 consecutive quarters and increased regular dividends in each of the last 48 years. Its dividend yield is currently 0.7%, which is higher than the industry’s average of 0.3%. Over the last 10 years, the insurer has returned $1.37 billion to shareholders and the quarterly dividend has grown an average of 5% per year.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Arch Capital Group Ltd. (ACGL - Free Report) , Kinsale Capital Group, Inc. (KNSL - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arch Capital has a decent history of delivering earnings surprises in the last four quarters, the average being 26.83%. In the past year, ACGL has rallied 78.2%.
The Zacks Consensus Estimate for ACGL’s 2023 and 2024 earnings has moved 0.7% and 1.4% north, respectively, in the past seven days, reflecting analysts’ optimism.
Kinsale Capital beat estimates in each of the last four quarters, the average being 14.88%. In the past year, KNSL has soared 60.1%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings has moved 0.6% and 1% north, respectively, in the past seven days, reflecting analysts’ optimism.
Cincinnati Financial has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 25.25%. In the past year, CINF has gained 2.8%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5 and $5.88, indicating a year-over-year increase of 17.9% and 17.6%, respectively.