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Compelling Reasons to Retain Markel Group (MKL) Stock Now
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Markel Group Inc. (MKL - Free Report) has been gaining momentum on the back of new business volume, strong retention levels, an improving rate environment, higher interest income on cash equivalents, strategic buyouts and favorable growth estimates.
Growth Projections
The Zacks Consensus Estimate for Markel Group’s 2025 earnings per share indicates a year-over-year increase of 21.1% from the consensus estimate of 2024. The consensus estimate for revenues is pegged at $15.92 billion, implying a year-over-year improvement of 5.4% from the consensus mark of 2024.
Zacks Rank & Price Performance
Markel Group currently carries a Zacks Rank #3 (Hold). The stock has gained 17.4% compared with the industry’s growth of 10.8% in the past year.
Image Source: Zacks Investment Research
Style Score
MKL has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Return on Equity (ROE)
Markel Group’s trailing 12-month ROE was 11.2%, up 340 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
Business Tailwinds
MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the momentum.
Investment income should continue to benefit from an improving rate environment, higher interest income on cash equivalents, fixed maturity securities and short-term investments due to higher yields.
Markel Group considers strategic buyouts a prudent approach to ramp up its growth profile. Acquisitions have helped the company enhance its surety capabilities, ramp up Markel Ventures’ revenues and expand its reinsurance product offerings. The insurer has been pursuing acquisitions to achieve profitable growth in insurance operations and create additional value on a diversified basis in Markel Ventures’ operations.
Higher revenues at construction services and transportation-related businesses due to a combination of increased demand, higher prices and growth, as well as a rise in production at one of the equipment manufacturing businesses are expected to boost operating revenues. The increase also reflected a full-year contribution from Metromont.
Banking on a strong capital position, the insurer has engaged in share buybacks. The company has a share repurchase program authorized by the board that provides for the repurchase of up to $750 million of shares. As of Dec 31, 2023, $713 million remained available for repurchases under the program. In 2023, the company repurchased shares for $445 million.
Stocks to Consider
Some better-ranked stocks from the Diversified Operations industry are Carlisle Companies Incorporated (CSL - Free Report) , Vector Group Ltd. (VGR - Free Report) and Griffon Corporation (GFF - Free Report) . While Carlisle Companies and Vector Group sport a Zacks Rank #1 (Strong Buy), Griffon carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carlisle beat earnings estimates in three of the last four quarters and missed in one, the average being 7.55%. In the past year, CSL has gained 73.5%.
The Zacks Consensus Estimate for CSL’s 2024 and 2025 earnings implies year-over-year growth of 20.4% and 10.9%, respectively, from the consensus estimate of the corresponding years.
Vector Group beat earnings estimates in two of the last four quarters and missed in the other two, the average being 10.22%. In the past year, VGR has lost 10.4%.
The Zacks Consensus Estimate for VGR’s 2024 and 2025 earnings implies year-over-year growth of 0.8% and 7.2%, respectively, from the consensus estimate of the corresponding years.
Griffon delivered a four-quarter average earnings surprise of 42.03%. In the past year, GFF has surged 129%.
The Zacks Consensus Estimate for GFF’s 2024 and 2025 earnings implies year-over-year growth of 0.8% and 24.5%, respectively, from the consensus estimate of the corresponding years.
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Compelling Reasons to Retain Markel Group (MKL) Stock Now
Markel Group Inc. (MKL - Free Report) has been gaining momentum on the back of new business volume, strong retention levels, an improving rate environment, higher interest income on cash equivalents, strategic buyouts and favorable growth estimates.
Growth Projections
The Zacks Consensus Estimate for Markel Group’s 2025 earnings per share indicates a year-over-year increase of 21.1% from the consensus estimate of 2024. The consensus estimate for revenues is pegged at $15.92 billion, implying a year-over-year improvement of 5.4% from the consensus mark of 2024.
Zacks Rank & Price Performance
Markel Group currently carries a Zacks Rank #3 (Hold). The stock has gained 17.4% compared with the industry’s growth of 10.8% in the past year.
Image Source: Zacks Investment Research
Style Score
MKL has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Return on Equity (ROE)
Markel Group’s trailing 12-month ROE was 11.2%, up 340 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
Business Tailwinds
MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the momentum.
Investment income should continue to benefit from an improving rate environment, higher interest income on cash equivalents, fixed maturity securities and short-term investments due to higher yields.
Markel Group considers strategic buyouts a prudent approach to ramp up its growth profile. Acquisitions have helped the company enhance its surety capabilities, ramp up Markel Ventures’ revenues and expand its reinsurance product offerings. The insurer has been pursuing acquisitions to achieve profitable growth in insurance operations and create additional value on a diversified basis in Markel Ventures’ operations.
Higher revenues at construction services and transportation-related businesses due to a combination of increased demand, higher prices and growth, as well as a rise in production at one of the equipment manufacturing businesses are expected to boost operating revenues. The increase also reflected a full-year contribution from Metromont.
Banking on a strong capital position, the insurer has engaged in share buybacks. The company has a share repurchase program authorized by the board that provides for the repurchase of up to $750 million of shares. As of Dec 31, 2023, $713 million remained available for repurchases under the program. In 2023, the company repurchased shares for $445 million.
Stocks to Consider
Some better-ranked stocks from the Diversified Operations industry are Carlisle Companies Incorporated (CSL - Free Report) , Vector Group Ltd. (VGR - Free Report) and Griffon Corporation (GFF - Free Report) . While Carlisle Companies and Vector Group sport a Zacks Rank #1 (Strong Buy), Griffon carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carlisle beat earnings estimates in three of the last four quarters and missed in one, the average being 7.55%. In the past year, CSL has gained 73.5%.
The Zacks Consensus Estimate for CSL’s 2024 and 2025 earnings implies year-over-year growth of 20.4% and 10.9%, respectively, from the consensus estimate of the corresponding years.
Vector Group beat earnings estimates in two of the last four quarters and missed in the other two, the average being 10.22%. In the past year, VGR has lost 10.4%.
The Zacks Consensus Estimate for VGR’s 2024 and 2025 earnings implies year-over-year growth of 0.8% and 7.2%, respectively, from the consensus estimate of the corresponding years.
Griffon delivered a four-quarter average earnings surprise of 42.03%. In the past year, GFF has surged 129%.
The Zacks Consensus Estimate for GFF’s 2024 and 2025 earnings implies year-over-year growth of 0.8% and 24.5%, respectively, from the consensus estimate of the corresponding years.