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MKL Outperforms Industry, Trades at a Discount: How to Play the Stock?
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Key Takeaways
MKL pursues strategic acquisitions to boost insurance operations and grow Markel Ventures' revenues.
MKL maintains a strong capital position and robust cash reserves, ensuring financial flexibility.
MKL shares have risen 21.1% in the past year compared with the industry's growth of 7.4%.
Shares of Markel Group Inc. (MKL - Free Report) have rallied 21.1% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite’s growth of 7.4%, 19.4% and 11.4%, respectively.
Markel Group has outperformed its peers, ITT Inc. (ITT - Free Report) and Honeywell International Inc. (HON - Free Report) , which have risen 16.7% and 8.7%, respectively, in the past year. Meanwhile, shares of Carlisle Companies Incorporated (CSL - Free Report) have declined 7.1% in the past year.
MKL Outperforms Industry, Sector & S&P 500 in 1 Year
Image Source: Zacks Investment Research
The stock has a market capitalization of $24.57 billion. The average volume of shares traded in the last three months was 0.05 million. Markel Group’s bottom line surpassed earnings in three of the last four quarters and missed in one, the average being 11.26%.
MKL Shares Are Affordable
Markel Group shares are trading at a discount compared to the industry. Its price-to-book ratio of 1.48X is lower than the industry average of 6.75X, the Finance sector’s 6.75X and the Zacks S&P 500 composite’s 8.03X. Also, it has a Value Score of B.
Image Source: Zacks Investment Research
MKL Trading Above 50-Day and 200-Day Moving Averages
Shares of Markel Group are trading above the 50-day and 200-day simple moving averages (SMAs) of $1,847.32 and $1,742.23, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data. Its share price as of June 5, 2025 was $1,937.11, down 6.1% from its 52-week high of $2,063.68.
MKL Trading Above 50-Day and 200-Day Moving Averages
Image Source: Zacks Investment Research
MKL’s Encouraging Growth Projections
The Zacks Consensus Estimate for Markel Group’s 2025 earnings per share indicates a year-over-year increase of 16.9%. The consensus estimate for revenues is pegged at $15.18 billion, implying a year-over-year improvement of 2.4%.
The consensus estimate for 2026 earnings per share and revenues implies an increase of 12.1% and 6.6%, respectively, from the corresponding 2025 estimates.
Earnings have grown 23.1% in the past five years, better than the industry average of 16.2%.
Mixed Analyst Sentiment for MKL
Two of the five analysts covering the stock have raised estimates for 2025, while one analyst has lowered the same for 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 earnings has moved up 1.8% in the past 30 days, while the same for 2026 has moved down 0.2% in the same time frame.
Image Source: Zacks Investment Research
Target Price Reflects Potential Downside for MKL
Based on short-term price targets offered by four analysts, the Zacks average price target is $1,879.00 per share. The average indicates a potential 2.6% downside from the last closing price.
Image Source: Zacks Investment Research
Return on Capital of MKL
Return on equity in the trailing 12 months was 7.48%, underperforming the industry average of 36.59%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds. Thus, MKL’s ROE is lagging the industry average.
Key Points to Note for MKL Stock
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.
MKL: Distribution of Wealth
Banking on a strong capital position, the company engages in share buybacks, a prudent way to distribute wealth to its shareholders. MKL has a share repurchase program, authorized by the board, that provides for the repurchase of up to $2 billion of shares. As of March 31, 2025, $1.7 billion remained available for repurchases under the program. Also, given its solid cash position of $4.2 billion, the company should not face any difficulty in meeting short-term obligations.
Conclusion
Given the company's strong stock performance, solid retention levels, an improving rate environment, favorable growth estimates and solid capital position, current shareholders may find it wise to hold onto MKL shares.
Markel Group's new business volume and prudent capital deployment present significant growth opportunities. MKL also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers.
Given Markel Group's unfavorable return on capital and the mixed analyst sentiments surrounding the company, it is better to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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MKL Outperforms Industry, Trades at a Discount: How to Play the Stock?
Key Takeaways
Shares of Markel Group Inc. (MKL - Free Report) have rallied 21.1% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite’s growth of 7.4%, 19.4% and 11.4%, respectively.
Markel Group has outperformed its peers, ITT Inc. (ITT - Free Report) and Honeywell International Inc. (HON - Free Report) , which have risen 16.7% and 8.7%, respectively, in the past year. Meanwhile, shares of Carlisle Companies Incorporated (CSL - Free Report) have declined 7.1% in the past year.
MKL Outperforms Industry, Sector & S&P 500 in 1 Year
Image Source: Zacks Investment Research
The stock has a market capitalization of $24.57 billion. The average volume of shares traded in the last three months was 0.05 million.
Markel Group’s bottom line surpassed earnings in three of the last four quarters and missed in one, the average being 11.26%.
MKL Shares Are Affordable
Markel Group shares are trading at a discount compared to the industry. Its price-to-book ratio of 1.48X is lower than the industry average of 6.75X, the Finance sector’s 6.75X and the Zacks S&P 500 composite’s 8.03X. Also, it has a Value Score of B.
Image Source: Zacks Investment Research
MKL Trading Above 50-Day and 200-Day Moving Averages
Shares of Markel Group are trading above the 50-day and 200-day simple moving averages (SMAs) of $1,847.32 and $1,742.23, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data. Its share price as of June 5, 2025 was $1,937.11, down 6.1% from its 52-week high of $2,063.68.
MKL Trading Above 50-Day and 200-Day Moving Averages
Image Source: Zacks Investment Research
MKL’s Encouraging Growth Projections
The Zacks Consensus Estimate for Markel Group’s 2025 earnings per share indicates a year-over-year increase of 16.9%. The consensus estimate for revenues is pegged at $15.18 billion, implying a year-over-year improvement of 2.4%.
The consensus estimate for 2026 earnings per share and revenues implies an increase of 12.1% and 6.6%, respectively, from the corresponding 2025 estimates.
Earnings have grown 23.1% in the past five years, better than the industry average of 16.2%.
Mixed Analyst Sentiment for MKL
Two of the five analysts covering the stock have raised estimates for 2025, while one analyst has lowered the same for 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 earnings has moved up 1.8% in the past 30 days, while the same for 2026 has moved down 0.2% in the same time frame.
Image Source: Zacks Investment Research
Target Price Reflects Potential Downside for MKL
Based on short-term price targets offered by four analysts, the Zacks average price target is $1,879.00 per share. The average indicates a potential 2.6% downside from the last closing price.
Image Source: Zacks Investment Research
Return on Capital of MKL
Return on equity in the trailing 12 months was 7.48%, underperforming the industry average of 36.59%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds. Thus, MKL’s ROE is lagging the industry average.
Key Points to Note for MKL Stock
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.
MKL: Distribution of Wealth
Banking on a strong capital position, the company engages in share buybacks, a prudent way to distribute wealth to its shareholders. MKL has a share repurchase program, authorized by the board, that provides for the repurchase of up to $2 billion of shares. As of March 31, 2025, $1.7 billion remained available for repurchases under the program. Also, given its solid cash position of $4.2 billion, the company should not face any difficulty in meeting short-term obligations.
Conclusion
Given the company's strong stock performance, solid retention levels, an improving rate environment, favorable growth estimates and solid capital position, current shareholders may find it wise to hold onto MKL shares.
Markel Group's new business volume and prudent capital deployment present significant growth opportunities. MKL also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers.
Given Markel Group's unfavorable return on capital and the mixed analyst sentiments surrounding the company, it is better to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.