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Strength Seen in Axis Capital (AXS): Can Its 6.4% Jump Turn into More Strength?
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Axis Capital (AXS - Free Report) shares soared 6.4% in the last trading session to close at $58.48. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.
The insurer announced preliminary financial results for the year ended Dec 31, 2023 where it continues to generate premium growth with double-digit increases across the vast majority of the specialty insurance lines, and further improved and streamlined the operating model. It is rightly on track to be specialty underwriting leader.
AXS expects to report net income available to shareholders of $346 million, or $4.02 per diluted common share, and operating income of $486 million, or $5.65 per diluted common share, for the year ended Dec 31, 2023.
For the year ended Dec 31, 2023, AXIS Capital projects an increase in gross premiums written of $142 million, or 2%, and the current accident year combined ratio of 91.8% compared with 96.3% in the prior year.
AXS anticipates book value per diluted common share of $54.06 for the year ended Dec 31, 2023, representing an increase of 15.1% over the past 12 months.
Axis Capital bolstered its prior year reserves in the fourth quarter of 2023 by $425 million, pre-tax ($361 million, post-tax) on the back of its insurance and reinsurance segments in liability lines and professional lines primarily related to 2019 and earlier accident years. This amount is equivalent to 4.5% of net loss reserves as of Sep 30, 2023.
This insurance company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -52.8%. Revenues are expected to be $1.47 billion, down 1.6% 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 Axis Capital, the consensus EPS estimate for the quarter has been revised 2.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AXS going forward to see if this recent jump can turn into more strength down the road.
Axis Capital is part of the Zacks Insurance - Property and Casualty industry. CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) , another stock in the same industry, closed the last trading session 0.2% lower at $11.01. CCCS has returned -4.1% in the past month.
For CCC Intelligent Solutions Holdings Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. This represents a change of +28.6% from what the company reported a year ago. CCC Intelligent Solutions Holdings Inc. currently has a Zacks Rank of #2 (Buy).
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Strength Seen in Axis Capital (AXS): Can Its 6.4% Jump Turn into More Strength?
Axis Capital (AXS - Free Report) shares soared 6.4% in the last trading session to close at $58.48. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.
The insurer announced preliminary financial results for the year ended Dec 31, 2023 where it continues to generate premium growth with double-digit increases across the vast majority of the specialty insurance lines, and further improved and streamlined the operating model. It is rightly on track to be specialty underwriting leader.
AXS expects to report net income available to shareholders of $346 million, or $4.02 per diluted common share, and operating income of $486 million, or $5.65 per diluted common share, for the year ended Dec 31, 2023.
For the year ended Dec 31, 2023, AXIS Capital projects an increase in gross premiums written of $142 million, or 2%, and the current accident year combined ratio of 91.8% compared with 96.3% in the prior year.
AXS anticipates book value per diluted common share of $54.06 for the year ended Dec 31, 2023, representing an increase of 15.1% over the past 12 months.
Axis Capital bolstered its prior year reserves in the fourth quarter of 2023 by $425 million, pre-tax ($361 million, post-tax) on the back of its insurance and reinsurance segments in liability lines and professional lines primarily related to 2019 and earlier accident years. This amount is equivalent to 4.5% of net loss reserves as of Sep 30, 2023.
This insurance company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -52.8%. Revenues are expected to be $1.47 billion, down 1.6% 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 Axis Capital, the consensus EPS estimate for the quarter has been revised 2.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AXS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Axis Capital is part of the Zacks Insurance - Property and Casualty industry. CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) , another stock in the same industry, closed the last trading session 0.2% lower at $11.01. CCCS has returned -4.1% in the past month.
For CCC Intelligent Solutions Holdings Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. This represents a change of +28.6% from what the company reported a year ago. CCC Intelligent Solutions Holdings Inc. currently has a Zacks Rank of #2 (Buy).