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Here's Why Kinsale Capital Group, Inc. (KNSL) Fell More Than Broader Market

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In the latest trading session, Kinsale Capital Group, Inc. (KNSL - Free Report) closed at $391.12, marking a -1.14% move from the previous day. This move lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.76%.

Coming into today, shares of the company had gained 5.28% in the past month. In that same time, the Finance sector gained 2.1%, while the S&P 500 gained 0.79%.

Investors will be eagerly watching for the performance of Kinsale Capital Group, Inc. in its upcoming earnings disclosure. In that report, analysts expect Kinsale Capital Group, Inc. to post earnings of $5.24 per share. This would mark year-over-year growth of 13.42%. Meanwhile, our latest consensus estimate is calling for revenue of $471.37 million, up 14.38% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $18.9 per share and revenue of $1.86 billion, which would represent changes of +17.68% and +17.25%, respectively, from the prior year.

Any recent changes to analyst estimates for Kinsale Capital Group, Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Kinsale Capital Group, Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Kinsale Capital Group, Inc. is currently trading at a Forward P/E ratio of 20.93. This denotes a premium relative to the industry average Forward P/E of 11.51.

One should further note that KNSL currently holds a PEG ratio of 1.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 19% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow KNSL in the coming trading sessions, be sure to utilize Zacks.com.


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