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AXS is trading above its 50 and 200-day SMAs, signaling positive momentum and a bullish trend.
AXS gained 20.5% over the past year, outperforming peers with a strong specialty-focused portfolio.
Despite high ROE and dividend growth, 2026 earnings are forecast to decline 10.4% year over year.
Shares of Axis Capital Holdings (AXS - Free Report) have gained momentum. The stock is trading above its 50 and 200-day simple moving average (SMA), signaling a bullish trend.
The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first markers of an uptrend or downtrend.
50-Day and 200-Day SMA
Image Source: Zacks Investment Research
Based on short-term price targets offered by 11 analysts, the Zacks average price target is $118.18 per share. The average suggests a potential 8.7% upside from the last closing price.
AXS shares have gained 20.5% in a year, outperforming the industry’s growth of 11%. A compelling and diversified product portfolio, underwriting excellence, digital capabilities and solid capital position continue to drive this specialty and global reinsurer.
AXS vs Industry in a Year
Image Source: Zacks Investment Research
RenaissanceRe Holdings (RNR - Free Report) , its peer, has gained 13% in a year, while another peer, Everest Group (EG - Free Report) has lost 6.6% in the same timeframe.
AXS Shares are Affordable
The stock is undervalued compared with its industry. It is currently trading at a price-to-book multiple of 1.42, lower than the industry average of 1.52 but above the median of 1.37.
Image Source: Zacks Investment Research
AXS is relatively expensive compared with RenaissanceRe and Everest Group.
The Case for AXS Stock
AXIS Capital is a global specialty insurer with a strategic emphasis on higher-value, less commoditized insurance products. Its portfolio spans professional liability, cyber insurance, marine and aviation coverage, as well as political risk and terrorism insurance lines designed to address complex and non-standard risks that fall outside traditional insurance solutions. By focusing on specialty segments, AXIS targets markets with higher margins and lower competitive intensity, allowing it to leverage deep underwriting expertise, preserve pricing discipline and cultivate long-term client relationships. This strategy enhances the company’s profitability and resilience across insurance cycles. Notably, AXIS sees strong growth opportunities in specialty lines such as marine cargo, cyber, and renewable energy, which are expected to deliver attractive double-digit returns on equity.
AXIS Capital writes business primarily in North America through excess and surplus, wholesale, financial lines, programs and multiline products, while also maintaining a meaningful presence in Canada. Both regions are benefiting from stable economic conditions and rising demand for insurance coverage amid escalating climate-related and cyber risks. Over the past three years, AXIS has expanded its underwriting capabilities and repositioned its portfolio, resulting in improved segment performance and a more stable book of business. The company has reduced inherent volatility by lowering probable maximum losses, decreasing policy limits and exiting or scaling back underperforming lines, while simultaneously driving rate increases and prioritizing growth in its most attractive markets.
Strong client and distribution relationships remain central to AXIS’ business model. The company collaborates with brokers, coverholders and strategic partners to distribute insurance and reinsurance solutions globally, enabling it to broaden market access and customize offerings to meet specific client needs. This partnership-driven approach supports effective risk management and high service standards.
AXIS Capital continues to enhance shareholder value through consistent dividend growth and share repurchases. The company has delivered 18 consecutive annual dividend increases, achieving a 10-year CAGR of 4.2% from 2015 to 2024. Its current dividend yield of 2.3% significantly exceeds the industry average of 0.2%, placing it among the highest-yielding peers. As of Sept. 30, 2025, AXIS had $400 million remaining under its board-authorized share repurchase program.
Profitability metrics further underscore AXIS’ strength. The company reported a trailing 12-month ROE of 19%, well above the industry average of 8.1%, while operating return on average common equity reached 17.8% in the third quarter, up 50 basis points year over year. Additionally, AXIS’ trailing 12-month ROIC of 11.9% compares favorably with the industry’s 6.2%, reflecting efficient capital deployment and sustained earnings growth.
Muted Analyst Sentiment
The Zacks Consensus Estimate for 2026 revenues indicates a 5.1% year-over-year increase, but earnings imply a 0.1% year-over-year decrease.
The consensus estimate for 2026 earnings witnessed no movement in the last 30 days.
While the consensus estimate for 2026 earnings of RNR witnessed no movement in the last 30 days, that of EG moved 1.5% south in the same time frame.
Parting Thoughts on AXS Shares
This leading specialty insurer and global reinsurer, which aims to lead in specialty risks, has been repositioning its portfolio and strengthening its book of businesses. Focusing on prudently deploying resources while enhancing efficiencies, improving its portfolio mix and underwriting profitability poises Axis Capital for growth.
However, given stiff competition in the reinsurance industry, muted analyst sentiment, near-term earnings pressure and VGM Score of C, it is better to adopt a wait-and-see approach on this Zacks Rank # 3 (Hold) stock.
Image: Shutterstock
AXS Stock Moves Above 50 & 200-Day SMA: Buy, Sell or Stay Invested?
Key Takeaways
Shares of Axis Capital Holdings (AXS - Free Report) have gained momentum. The stock is trading above its 50 and 200-day simple moving average (SMA), signaling a bullish trend.
The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first markers of an uptrend or downtrend.
50-Day and 200-Day SMA
Image Source: Zacks Investment Research
Based on short-term price targets offered by 11 analysts, the Zacks average price target is $118.18 per share. The average suggests a potential 8.7% upside from the last closing price.
AXS shares have gained 20.5% in a year, outperforming the industry’s growth of 11%. A compelling and diversified product portfolio, underwriting excellence, digital capabilities and solid capital position continue to drive this specialty and global reinsurer.
AXS vs Industry in a Year
Image Source: Zacks Investment Research
RenaissanceRe Holdings (RNR - Free Report) , its peer, has gained 13% in a year, while another peer, Everest Group (EG - Free Report) has lost 6.6% in the same timeframe.
AXS Shares are Affordable
The stock is undervalued compared with its industry. It is currently trading at a price-to-book multiple of 1.42, lower than the industry average of 1.52 but above the median of 1.37.
Image Source: Zacks Investment Research
AXS is relatively expensive compared with RenaissanceRe and Everest Group.
The Case for AXS Stock
AXIS Capital is a global specialty insurer with a strategic emphasis on higher-value, less commoditized insurance products. Its portfolio spans professional liability, cyber insurance, marine and aviation coverage, as well as political risk and terrorism insurance lines designed to address complex and non-standard risks that fall outside traditional insurance solutions. By focusing on specialty segments, AXIS targets markets with higher margins and lower competitive intensity, allowing it to leverage deep underwriting expertise, preserve pricing discipline and cultivate long-term client relationships. This strategy enhances the company’s profitability and resilience across insurance cycles. Notably, AXIS sees strong growth opportunities in specialty lines such as marine cargo, cyber, and renewable energy, which are expected to deliver attractive double-digit returns on equity.
AXIS Capital writes business primarily in North America through excess and surplus, wholesale, financial lines, programs and multiline products, while also maintaining a meaningful presence in Canada. Both regions are benefiting from stable economic conditions and rising demand for insurance coverage amid escalating climate-related and cyber risks. Over the past three years, AXIS has expanded its underwriting capabilities and repositioned its portfolio, resulting in improved segment performance and a more stable book of business. The company has reduced inherent volatility by lowering probable maximum losses, decreasing policy limits and exiting or scaling back underperforming lines, while simultaneously driving rate increases and prioritizing growth in its most attractive markets.
Strong client and distribution relationships remain central to AXIS’ business model. The company collaborates with brokers, coverholders and strategic partners to distribute insurance and reinsurance solutions globally, enabling it to broaden market access and customize offerings to meet specific client needs. This partnership-driven approach supports effective risk management and high service standards.
AXIS Capital continues to enhance shareholder value through consistent dividend growth and share repurchases. The company has delivered 18 consecutive annual dividend increases, achieving a 10-year CAGR of 4.2% from 2015 to 2024. Its current dividend yield of 2.3% significantly exceeds the industry average of 0.2%, placing it among the highest-yielding peers. As of Sept. 30, 2025, AXIS had $400 million remaining under its board-authorized share repurchase program.
Profitability metrics further underscore AXIS’ strength. The company reported a trailing 12-month ROE of 19%, well above the industry average of 8.1%, while operating return on average common equity reached 17.8% in the third quarter, up 50 basis points year over year. Additionally, AXIS’ trailing 12-month ROIC of 11.9% compares favorably with the industry’s 6.2%, reflecting efficient capital deployment and sustained earnings growth.
Muted Analyst Sentiment
The Zacks Consensus Estimate for 2026 revenues indicates a 5.1% year-over-year increase, but earnings imply a 0.1% year-over-year decrease.
The consensus estimate for 2026 earnings witnessed no movement in the last 30 days.
While the consensus estimate for 2026 earnings of RNR witnessed no movement in the last 30 days, that of EG moved 1.5% south in the same time frame.
Parting Thoughts on AXS Shares
This leading specialty insurer and global reinsurer, which aims to lead in specialty risks, has been repositioning its portfolio and strengthening its book of businesses. Focusing on prudently deploying resources while enhancing efficiencies, improving its portfolio mix and underwriting profitability poises Axis Capital for growth.
However, given stiff competition in the reinsurance industry, muted analyst sentiment, near-term earnings pressure and VGM Score of C, 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.