We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WRB Outperforms Industry, Hits 52-Week High: How to Play the Stock
Read MoreHide Full Article
Key Takeaways
WRB focuses on commercial lines, including excess & surplus, admitted, and specialty personal lines.
WRB's growth drivers include diversification, reserving discipline, and alternative asset investments.
WRB's dividend yield of 0.4% exceeds the industry average of 0.2%.
W.R. Berkley Corporation (WRB - Free Report) hit a 52-week high of $77.95 on Oct. 7. Shares closed at $77.77, having gained 34.1% in the past year, outperforming the industry, the sector, and the Zacks S&P 500 composite’s growth of 8.3%, 17.4%, and 18.6%, respectively.
W.R. Berkley has outperformed its peers, The Travelers Companies, Inc. (TRV - Free Report) , Palomar Holdings, Inc. (PLMR - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , which have risen 23.2%, 20.9% and 23.1%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $29.49 billion, the average number of shares traded in the last three months was 1.9 million.
WRB Trading Above 50-Day and 200-Day Moving Averages
The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $72.47 and $67.94, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
WRB Shares are Expensive
WRB shares are trading at a premium to the industry. Its price-to-book value of 3.17X is higher than the industry average of 1.58X.
WRB’s Encouraging Growth Projection
The Zacks Consensus Estimate for W.R. Berkley’s 2025 earnings per share indicates a year-over-year increase of 1.9%. The consensus estimate for revenues is pegged at $14.64 billion, implying a year-over-year improvement of 8.2%.
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 12% and 6.1%, respectively, from the corresponding 2025 estimates.
Notably, earnings grew 27.8% in the past five years, better than the industry average of 21.6%.
WRB’s Favorable Return on Capital
Return on equity for the trailing 12 months was 18.8%, which compared favorably with the industry’s 7.6%. This reflects its efficiency in utilizing shareholders’ funds.
Also, return on invested capital (ROIC) has been increasing over the last few quarters while the company raised its capital investment over the same time frame. This reflects WRB’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 8.8%, better than the industry average of 5.9%.
Factors Acting in Favor of WRB Stock
As part of its growth strategy, WRB has been focusing on commercial lines, including excess and surplus lines, admitted lines, and specialty personal lines, where it also has a competitive advantage.
WRB’s insurance business, which contributes the lion’s share to net premium written, is poised to grow on the strength of several new startup units in varied business lines, expansion of international business that offers diversification benefits, rate increases, market dislocations, and high retention.
W.R. Berkley remains focused on expanding selectively in attractive global markets and thus has operations in the emerging markets of the United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia, and Australia.
WRB boasts more than 60 straight quarters of favorable reserve development, given its prudent underwriting. Operational excellence supports it in maintaining a solid balance sheet with sufficient liquidity and strong cash flows.
End Notes
The property and casualty insurer is set to grow on rate increases, reserving discipline, diversification benefits, momentum in international business, investment in alternative assets, and consistent cash flow.
Banking on consistent cash flow, W.R. Berkley has been increasing dividends since 2005, as well as paying special dividends apart from buying back shares. Its dividend yield of 0.4% appears attractive compared with the industry average of 0.2%, making it an attractive pick for yield-seeking investors.
Image: Bigstock
WRB Outperforms Industry, Hits 52-Week High: How to Play the Stock
Key Takeaways
W.R. Berkley Corporation (WRB - Free Report) hit a 52-week high of $77.95 on Oct. 7. Shares closed at $77.77, having gained 34.1% in the past year, outperforming the industry, the sector, and the Zacks S&P 500 composite’s growth of 8.3%, 17.4%, and 18.6%, respectively.
W.R. Berkley has outperformed its peers, The Travelers Companies, Inc. (TRV - Free Report) , Palomar Holdings, Inc. (PLMR - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , which have risen 23.2%, 20.9% and 23.1%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $29.49 billion, the average number of shares traded in the last three months was 1.9 million.
WRB Trading Above 50-Day and 200-Day Moving Averages
The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $72.47 and $67.94, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
WRB Shares are Expensive
WRB shares are trading at a premium to the industry. Its price-to-book value of 3.17X is higher than the industry average of 1.58X.
WRB’s Encouraging Growth Projection
The Zacks Consensus Estimate for W.R. Berkley’s 2025 earnings per share indicates a year-over-year increase of 1.9%. The consensus estimate for revenues is pegged at $14.64 billion, implying a year-over-year improvement of 8.2%.
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 12% and 6.1%, respectively, from the corresponding 2025 estimates.
Notably, earnings grew 27.8% in the past five years, better than the industry average of 21.6%.
WRB’s Favorable Return on Capital
Return on equity for the trailing 12 months was 18.8%, which compared favorably with the industry’s 7.6%. This reflects its efficiency in utilizing shareholders’ funds.
Also, return on invested capital (ROIC) has been increasing over the last few quarters while the company raised its capital investment over the same time frame. This reflects WRB’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 8.8%, better than the industry average of 5.9%.
Factors Acting in Favor of WRB Stock
As part of its growth strategy, WRB has been focusing on commercial lines, including excess and surplus lines, admitted lines, and specialty personal lines, where it also has a competitive advantage.
WRB’s insurance business, which contributes the lion’s share to net premium written, is poised to grow on the strength of several new startup units in varied business lines, expansion of international business that offers diversification benefits, rate increases, market dislocations, and high retention.
W.R. Berkley remains focused on expanding selectively in attractive global markets and thus has operations in the emerging markets of the United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia, and Australia.
WRB boasts more than 60 straight quarters of favorable reserve development, given its prudent underwriting. Operational excellence supports it in maintaining a solid balance sheet with sufficient liquidity and strong cash flows.
End Notes
The property and casualty insurer is set to grow on rate increases, reserving discipline, diversification benefits, momentum in international business, investment in alternative assets, and consistent cash flow.
Banking on consistent cash flow, W.R. Berkley has been increasing dividends since 2005, as well as paying special dividends apart from buying back shares. Its dividend yield of 0.4% appears attractive compared with the industry average of 0.2%, making it an attractive pick for yield-seeking investors.
Given the premium valuation, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.