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Reasons Why Assurant (AIZ) Stock is an Attractive Pick Now
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Assurant, Inc. (AIZ - Free Report) is well-poised to gain on the back of a well-performing Global Lifestyle business, growth of fee-based capital-light businesses and solid capital management.
Earnings Estimates
The Zacks Consensus Estimate for Assurant’s 2024 earnings is pegged at $16.02 per share, indicating a 3.4% increase from the year-ago reported figure on 4.1% higher revenues of $11.66 billion.
Earnings Surprise History
Assurant has a decent surprise history, beating earnings estimates in each of the last four quarters, the average surprise being 42.15%.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved up nearly 5.9% and 6.4%, respectively, in the past 30 days, reflecting investors’ optimism.
Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). Over the past year, shares of AIZ have risen 44.6% compared with the industry’s growth of 5.6%.
Image Source: Zacks Investment Research
Style Score
AIZ has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum. Back-tested results have shown that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer better returns.
Attractive Valuation
Assurant shares are trading at a discount than the industry average. Its price-to-book value of 1.98X is lower than the industry average of 2.73X. Before the valuation expands, it is preferable to take a position in the stock.
AIZ has an impressive Value Score of B. Value stocks have a long history of showing superior returns.
Business Tailwinds
Assurant’s focus on growing fee-based capital-light businesses that presently constitute 52% of segmental revenues bodes well for growth. Management estimates that contribution from the same will continue to grow in double digits over the longer term.
Better performance in Homeowners reflecting higher lender-placed net earned premiums should drive better results at Global Housing. At the same time, growth across Connected Living and Global Automotive should drive Global Lifestyle.
The insurer remains focused on ramping up the Connected Living platform, deploying innovative products and services, and adding new partnerships. These initiatives are expected to double the margins of Connected Living to 8% over the long term.
Investment income, which has been witnessing an increase in net investment income over the past few years, should benefit from higher yields on fixed-maturity securities.
AIZ has a solid capital management policy in place. The insurer has been increasing dividends for the last 19 straight years. From Jan 1 through Feb 2, 2024, Assurant repurchased shares for $10 million, with $664 million remaining under the current repurchase authorizations. The company expects share repurchases in the range of $200-$300 million for 2024. Notably, its free cash flow conversion has remained more than 100% over the last many quarters, reflecting its solid earnings.
Other Stocks to Consider
Some other top-ranked stocks from the multi-line insurance industry are Enact Holdings (ACT - Free Report) , CNO Financial Group (CNO - Free Report) and MGIC Investment Corporation (MTG - Free Report) . While Enact Holdings and CNO Financial sport a Zacks Rank #1 each, MGIC Investment carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enact Holdings delivered a four-quarter average earnings surprise of 24.59%. In a year, ACT’s shares have gained 14.2%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 7.3% and 1%, respectively, in the past 30 days.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies a 2.5% and 7.1% increase, respectively, from the year-ago estimated figure. In a year, CNO’s shares have risen 4.5%.
CNO’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average surprise being 3.62%.
MGIC Investment delivered a four-quarter average earnings surprise of 14.84%. In the past year, the insurer's shares have jumped 44.6%.
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved up nearly 2.1% and 1.2%, respectively, in the past 30 days.
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Reasons Why Assurant (AIZ) Stock is an Attractive Pick Now
Assurant, Inc. (AIZ - Free Report) is well-poised to gain on the back of a well-performing Global Lifestyle business, growth of fee-based capital-light businesses and solid capital management.
Earnings Estimates
The Zacks Consensus Estimate for Assurant’s 2024 earnings is pegged at $16.02 per share, indicating a 3.4% increase from the year-ago reported figure on 4.1% higher revenues of $11.66 billion.
Earnings Surprise History
Assurant has a decent surprise history, beating earnings estimates in each of the last four quarters, the average surprise being 42.15%.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved up nearly 5.9% and 6.4%, respectively, in the past 30 days, reflecting investors’ optimism.
Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). Over the past year, shares of AIZ have risen 44.6% compared with the industry’s growth of 5.6%.
Image Source: Zacks Investment Research
Style Score
AIZ has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum. Back-tested results have shown that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer better returns.
Attractive Valuation
Assurant shares are trading at a discount than the industry average. Its price-to-book value of 1.98X is lower than the industry average of 2.73X. Before the valuation expands, it is preferable to take a position in the stock.
AIZ has an impressive Value Score of B. Value stocks have a long history of showing superior returns.
Business Tailwinds
Assurant’s focus on growing fee-based capital-light businesses that presently constitute 52% of segmental revenues bodes well for growth. Management estimates that contribution from the same will continue to grow in double digits over the longer term.
Better performance in Homeowners reflecting higher lender-placed net earned premiums should drive better results at Global Housing. At the same time, growth across Connected Living and Global Automotive should drive Global Lifestyle.
The insurer remains focused on ramping up the Connected Living platform, deploying innovative products and services, and adding new partnerships. These initiatives are expected to double the margins of Connected Living to 8% over the long term.
Investment income, which has been witnessing an increase in net investment income over the past few years, should benefit from higher yields on fixed-maturity securities.
AIZ has a solid capital management policy in place. The insurer has been increasing dividends for the last 19 straight years. From Jan 1 through Feb 2, 2024, Assurant repurchased shares for $10 million, with $664 million remaining under the current repurchase authorizations. The company expects share repurchases in the range of $200-$300 million for 2024. Notably, its free cash flow conversion has remained more than 100% over the last many quarters, reflecting its solid earnings.
Other Stocks to Consider
Some other top-ranked stocks from the multi-line insurance industry are Enact Holdings (ACT - Free Report) , CNO Financial Group (CNO - Free Report) and MGIC Investment Corporation (MTG - Free Report) . While Enact Holdings and CNO Financial sport a Zacks Rank #1 each, MGIC Investment carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enact Holdings delivered a four-quarter average earnings surprise of 24.59%. In a year, ACT’s shares have gained 14.2%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 7.3% and 1%, respectively, in the past 30 days.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies a 2.5% and 7.1% increase, respectively, from the year-ago estimated figure. In a year, CNO’s shares have risen 4.5%.
CNO’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average surprise being 3.62%.
MGIC Investment delivered a four-quarter average earnings surprise of 14.84%. In the past year, the insurer's shares have jumped 44.6%.
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved up nearly 2.1% and 1.2%, respectively, in the past 30 days.