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Palomar (PLMR) Moves 8.9% Higher: Will This Strength Last?
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Palomar (PLMR - Free Report) shares soared 8.9% in the last trading session to close at $82.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.3% gain over the past four weeks.
Strong premium retention rates, new partnerships, rate increases and effective capital deployment continue to drive Palomar shares.
New business generated, strong retention rates, strategic expansion of products’ geographic and distribution footprint, and new partnerships helps in increasing volume of policies written across the lines of business.
Palomar’s fee-generating PLMR-FRONT should fuel growth in the medium term. The addition of the fee-based revenue stream to the business is expected to strengthen its earnings base.
PLMR’s risk transfer strategy lowers exposure to major events, which, in turn, reduces earnings volatility and boasts a debt-free balance sheet with no exposure to the equity markets.
Palomar’s trailing 12-month return on equity, reflecting how effectively a company is utilizing its shareholders' funds as well as the return on invested capital indicating PLMR’s efficiency in utilizing funds to generate income outperform the industry average.
This insurance holding company is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +16.3%. Revenues are expected to be $108.71 million, up 22.1% 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 Palomar, the consensus EPS estimate for the quarter has been revised 0.6% 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 PLMR going forward to see if this recent jump can turn into more strength down the road.
Palomar is part of the Zacks Insurance - Property and Casualty industry. Hanover Insurance Group (THG - Free Report) , another stock in the same industry, closed the last trading session 1.4% lower at $129.26. THG has returned -3.4% in the past month.
Hanover Insurance's consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $2.67. Compared to the company's year-ago EPS, this represents a change of +1953.9%. Hanover Insurance currently boasts a Zacks Rank of #3 (Hold).
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Palomar (PLMR) Moves 8.9% Higher: Will This Strength Last?
Palomar (PLMR - Free Report) shares soared 8.9% in the last trading session to close at $82.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.3% gain over the past four weeks.
Strong premium retention rates, new partnerships, rate increases and effective capital deployment continue to drive Palomar shares.
New business generated, strong retention rates, strategic expansion of products’ geographic and distribution footprint, and new partnerships helps in increasing volume of policies written across the lines of business.
Palomar’s fee-generating PLMR-FRONT should fuel growth in the medium term. The addition of the fee-based revenue stream to the business is expected to strengthen its earnings base.
PLMR’s risk transfer strategy lowers exposure to major events, which, in turn, reduces earnings volatility and boasts a debt-free balance sheet with no exposure to the equity markets.
Palomar’s trailing 12-month return on equity, reflecting how effectively a company is utilizing its shareholders' funds as well as the return on invested capital indicating PLMR’s efficiency in utilizing funds to generate income outperform the industry average.
This insurance holding company is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +16.3%. Revenues are expected to be $108.71 million, up 22.1% 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 Palomar, the consensus EPS estimate for the quarter has been revised 0.6% 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 PLMR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Palomar is part of the Zacks Insurance - Property and Casualty industry. Hanover Insurance Group (THG - Free Report) , another stock in the same industry, closed the last trading session 1.4% lower at $129.26. THG has returned -3.4% in the past month.
Hanover Insurance's consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $2.67. Compared to the company's year-ago EPS, this represents a change of +1953.9%. Hanover Insurance currently boasts a Zacks Rank of #3 (Hold).