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Here's Why Investors Should Hold Everest Group (EG) Stock
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Everest Group, Ltd.’s (EG - Free Report) product diversification, higher income from the fixed income portfolio, favorable estimates, strong renewal retention, prudent capital deployment and a solid capital position make it worth retaining in one’s portfolio.
Growth Projections
The consensus estimate for Everest Group’s 2025 earnings per share indicates a year-over-year increase of 10.1% from the consensus estimate of 2024. The consensus estimate for 2025 revenues is pinned at $19.27 billion, implying a year-over-year improvement of 9.5% from the consensus mark of 2024.
Northbound Estimate Revision
The Zacks Consensus Estimate for EG’s 2024 and 2025 earnings has moved 0.1% and 2.2% north, respectively, in the past 60 days. This should instill investors' confidence in the stock.
Earnings Surprise History
EG surpassed earnings estimates in three of the last four quarters and missed in one, the average being 34.67%.
Zacks Rank & Price Performance
Everest Group currently carries a Zacks Rank #3 (Hold). Year to date, the stock has gained 7.8% compared with the industry’s growth of 8.7%.
Image Source: Zacks Investment Research
Return on Equity
Everest Group’s annualized operating income return on equity was 20.9% in 2023, which expanded 1,490 basis points (bps) year over year. Its return on equity for the trailing 12 months is 25.1%, which expanded 1,270 bps year over year and compared favorably with the industry average of 13.7%. This reflects its efficiency in utilizing its shareholders’ funds.
Style Score
The insurer has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Global presence, product diversification, rate increase and high retention rate continue to drive EG’s overall growth. The Insurance segment is poised to benefit from an increase in property and short tail business and a rise in specialty casualty business. On the other hand, leveraging opportunities stemming from the continued disruption and evolution of the reinsurance market should poise the Reinsurance segment for growth.
Net investment income stands to benefit from higher income from the fixed income portfolio, increase in limited partnership income, rise in dividend income from the equity portfolio and higher income from other invested assets. An improved interest rate environment adds to the upside.
Everest Group has a strong capital position, banking on sufficient cash generation capabilities and benefits from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities.
The company boasts a consistent increase in dividends, with the metric witnessing an eight-year (2016-2023) CAGR of 34.9%. The insurer targets a total shareholder return on equity of more than 17% from 2024 to 2026, reflecting robust and well-diversified earnings power. EG boasts consistent and industry-leading shareholder returns.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Enact Holdings (ACT - Free Report) , EverQuote, Inc. (EVER - Free Report) and Horace Mann Educators Corporation (HMN - Free Report) . While Enact Holdings sports a Zacks Rank #1 (Strong Buy), EverQuote and Horace Mann Educators carry a Zacks Rank #2 (Buy) each 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%. Year to date, shares of ACT have gained 6%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 8.2% and 2.6%, respectively, in the past 60 days.
The Zacks Consensus Estimate for EverQuote’s 2024 and 2025 earnings implies year-over-year growth of 72% and 53%, respectively, from the consensus estimate of the corresponding years. Year to date, shares of EVER have rallied 58.8%.
EVER delivered a four-quarter average earnings surprise of 36.78%. Horace Mann Educators’ earnings surpassed estimates in three of the last four quarters and matched in one, the average surprise being 15.24%. Year to date, shares of HMN have gained 9.1%.
The Zacks Consensus Estimate for HMN’s 2024 and 2025 earnings implies year-over-year growth of 104.5% and 19%, respectively, from the consensus estimate of the corresponding years.
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Here's Why Investors Should Hold Everest Group (EG) Stock
Everest Group, Ltd.’s (EG - Free Report) product diversification, higher income from the fixed income portfolio, favorable estimates, strong renewal retention, prudent capital deployment and a solid capital position make it worth retaining in one’s portfolio.
Growth Projections
The consensus estimate for Everest Group’s 2025 earnings per share indicates a year-over-year increase of 10.1% from the consensus estimate of 2024. The consensus estimate for 2025 revenues is pinned at $19.27 billion, implying a year-over-year improvement of 9.5% from the consensus mark of 2024.
Northbound Estimate Revision
The Zacks Consensus Estimate for EG’s 2024 and 2025 earnings has moved 0.1% and 2.2% north, respectively, in the past 60 days. This should instill investors' confidence in the stock.
Earnings Surprise History
EG surpassed earnings estimates in three of the last four quarters and missed in one, the average being 34.67%.
Zacks Rank & Price Performance
Everest Group currently carries a Zacks Rank #3 (Hold). Year to date, the stock has gained 7.8% compared with the industry’s growth of 8.7%.
Image Source: Zacks Investment Research
Return on Equity
Everest Group’s annualized operating income return on equity was 20.9% in 2023, which expanded 1,490 basis points (bps) year over year. Its return on equity for the trailing 12 months is 25.1%, which expanded 1,270 bps year over year and compared favorably with the industry average of 13.7%. This reflects its efficiency in utilizing its shareholders’ funds.
Style Score
The insurer has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Global presence, product diversification, rate increase and high retention rate continue to drive EG’s overall growth. The Insurance segment is poised to benefit from an increase in property and short tail business and a rise in specialty casualty business. On the other hand, leveraging opportunities stemming from the continued disruption and evolution of the reinsurance market should poise the Reinsurance segment for growth.
Net investment income stands to benefit from higher income from the fixed income portfolio, increase in limited partnership income, rise in dividend income from the equity portfolio and higher income from other invested assets. An improved interest rate environment adds to the upside.
Everest Group has a strong capital position, banking on sufficient cash generation capabilities and benefits from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities.
The company boasts a consistent increase in dividends, with the metric witnessing an eight-year (2016-2023) CAGR of 34.9%. The insurer targets a total shareholder return on equity of more than 17% from 2024 to 2026, reflecting robust and well-diversified earnings power. EG boasts consistent and industry-leading shareholder returns.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Enact Holdings (ACT - Free Report) , EverQuote, Inc. (EVER - Free Report) and Horace Mann Educators Corporation (HMN - Free Report) . While Enact Holdings sports a Zacks Rank #1 (Strong Buy), EverQuote and Horace Mann Educators carry a Zacks Rank #2 (Buy) each 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%. Year to date, shares of ACT have gained 6%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 8.2% and 2.6%, respectively, in the past 60 days.
The Zacks Consensus Estimate for EverQuote’s 2024 and 2025 earnings implies year-over-year growth of 72% and 53%, respectively, from the consensus estimate of the corresponding years. Year to date, shares of EVER have rallied 58.8%.
EVER delivered a four-quarter average earnings surprise of 36.78%.
Horace Mann Educators’ earnings surpassed estimates in three of the last four quarters and matched in one, the average surprise being 15.24%. Year to date, shares of HMN have gained 9.1%.
The Zacks Consensus Estimate for HMN’s 2024 and 2025 earnings implies year-over-year growth of 104.5% and 19%, respectively, from the consensus estimate of the corresponding years.