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Reasons Why Investors Should Bet On RLI Stock Right Now
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RLI Corp. (RLI - Free Report) has been in investors' good books on the back of a compelling product portfolio, rate increases, improved retention, higher premium receipts and sufficient liquidity.
Optimistic Growth Projections
The Zacks Consensus Estimate for 2023 and 2024 earnings per share is pegged at $4.80 and $5.56, indicating an increase of 2.3% and 15.8% from the year-ago reported figure, driven by 15.6% and 13.7% higher revenues of $1.42 billion and $1.62 billion, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 has moved 3% and 0.3% north in the past 60 days. This should instill investors' confidence in the stock.
Earnings Surprise History
RLI has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 145.76%.
Zacks Rank & Price Performance
The company currently carries a Zacks Rank #2 (Buy). Over the past six months, the stock has lost 2.4% compared with the industry’s rise of 5.2%. Image Source: Zacks Investment Research
Business Tailwinds
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 0.8%, 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.
NMI Holdings beat estimates in three of the last four quarters and matched in one, the average being 4.48%. Over the past six months, NMIH has gained 13.3%.
The Zacks Consensus Estimate for NMIH’s 2023 and 2024 earnings has moved 0.2% and 0.2% north, respectively, in the past 30 days, reflecting analysts’ optimism on the stock.
Kinsale Capital has a solid record of beating earnings estimates in each of the last trailing four quarters, the average being 14.25%. Over the past six months, KNSL has lost 9.4%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $12.06 and $14.72, indicating a year-over-year increase of 54.6% and 22%, respectively.
Cincinnati Financial has a solid record of beating earnings estimates in three of the last four quarters and missing in one, the average being 38.33%. Over the past six months, CINF has gained 5.2%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5.58 and $6.05, indicating a year-over-year increase of 31.6% and 8.4%, respectively.
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Reasons Why Investors Should Bet On RLI Stock Right Now
RLI Corp. (RLI - Free Report) has been in investors' good books on the back of a compelling product portfolio, rate increases, improved retention, higher premium receipts and sufficient liquidity.
Optimistic Growth Projections
The Zacks Consensus Estimate for 2023 and 2024 earnings per share is pegged at $4.80 and $5.56, indicating an increase of 2.3% and 15.8% from the year-ago reported figure, driven by 15.6% and 13.7% higher revenues of $1.42 billion and $1.62 billion, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 has moved 3% and 0.3% north in the past 60 days. This should instill investors' confidence in the stock.
Earnings Surprise History
RLI has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 145.76%.
Zacks Rank & Price Performance
The company currently carries a Zacks Rank #2 (Buy). Over the past six months, the stock has lost 2.4% compared with the industry’s rise of 5.2%.
Image Source: Zacks Investment Research
Business Tailwinds
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 0.8%, 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.
Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance industry are NMI Holdings Inc. (NMIH - Free Report) , Kinsale Capital Group, Inc. (KNSL - Free Report) and Cincinnati Financial Corporation (CINF - 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.
NMI Holdings beat estimates in three of the last four quarters and matched in one, the average being 4.48%. Over the past six months, NMIH has gained 13.3%.
The Zacks Consensus Estimate for NMIH’s 2023 and 2024 earnings has moved 0.2% and 0.2% north, respectively, in the past 30 days, reflecting analysts’ optimism on the stock.
Kinsale Capital has a solid record of beating earnings estimates in each of the last trailing four quarters, the average being 14.25%. Over the past six months, KNSL has lost 9.4%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $12.06 and $14.72, indicating a year-over-year increase of 54.6% and 22%, respectively.
Cincinnati Financial has a solid record of beating earnings estimates in three of the last four quarters and missing in one, the average being 38.33%. Over the past six months, CINF has gained 5.2%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5.58 and $6.05, indicating a year-over-year increase of 31.6% and 8.4%, respectively.