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Assurant, Inc. (AIZ) Hit a 52 Week High, Can the Run Continue?
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Shares of Assurant (AIZ - Free Report) have been strong performers lately, with the stock up 15% over the past month. The stock hit a new 52-week high of $168.44 in the previous session. Assurant has gained 34.6% since the start of the year compared to the 9.5% move for the Zacks Finance sector and the 2.4% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2023, Assurant reported EPS of $4.29 versus consensus estimate of $2.48 while it beat the consensus revenue estimate by 4.52%.
For the current fiscal year, Assurant is expected to post earnings of $14.56 per share on $10.94 billion in revenues. This represents a 30.82% change in EPS on a 5.44% change in revenues. For the next fiscal year, the company is expected to earn $15.09 per share on $11.37 billion in revenues. This represents a year-over-year change of 3.67% and 3.98%, respectively.
Valuation Metrics
Assurant may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Assurant has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.7X. On a trailing cash flow basis, the stock currently trades at 11.2X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 0.79. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Assurant currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Assurant fits the bill. Thus, it seems as though Assurant shares could still be poised for more gains ahead.
How Does AIZ Stack Up to the Competition?
Shares of AIZ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CNO Financial Group, Inc. (CNO - Free Report) . CNO has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of F.
Earnings were strong last quarter. CNO Financial Group, Inc. beat our consensus estimate by 18.92%, and for the current fiscal year, CNO is expected to post earnings of $3 per share on revenue of $3.73 billion.
Shares of CNO Financial Group, Inc. have gained 17.8% over the past month, and currently trade at a forward P/E of 9.78X and a P/CF of 4.98X.
The Insurance - Multi line industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AIZ and CNO, even beyond their own solid fundamental situation.
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Assurant, Inc. (AIZ) Hit a 52 Week High, Can the Run Continue?
Shares of Assurant (AIZ - Free Report) have been strong performers lately, with the stock up 15% over the past month. The stock hit a new 52-week high of $168.44 in the previous session. Assurant has gained 34.6% since the start of the year compared to the 9.5% move for the Zacks Finance sector and the 2.4% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2023, Assurant reported EPS of $4.29 versus consensus estimate of $2.48 while it beat the consensus revenue estimate by 4.52%.
For the current fiscal year, Assurant is expected to post earnings of $14.56 per share on $10.94 billion in revenues. This represents a 30.82% change in EPS on a 5.44% change in revenues. For the next fiscal year, the company is expected to earn $15.09 per share on $11.37 billion in revenues. This represents a year-over-year change of 3.67% and 3.98%, respectively.
Valuation Metrics
Assurant may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Assurant has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.7X. On a trailing cash flow basis, the stock currently trades at 11.2X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 0.79. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Assurant currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Assurant fits the bill. Thus, it seems as though Assurant shares could still be poised for more gains ahead.
How Does AIZ Stack Up to the Competition?
Shares of AIZ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CNO Financial Group, Inc. (CNO - Free Report) . CNO has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of F.
Earnings were strong last quarter. CNO Financial Group, Inc. beat our consensus estimate by 18.92%, and for the current fiscal year, CNO is expected to post earnings of $3 per share on revenue of $3.73 billion.
Shares of CNO Financial Group, Inc. have gained 17.8% over the past month, and currently trade at a forward P/E of 9.78X and a P/CF of 4.98X.
The Insurance - Multi line industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AIZ and CNO, even beyond their own solid fundamental situation.