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.
ORI Outperforms Industry, Trades at a Discount: How to Play the Stock
Read MoreHide Full Article
Key Takeaways
ORI expanded Specialty Insurance product capabilities beyond commercial auto and workers' comp in 2025.
ORI's Specialty Insurance gains from rate hikes, strong renewals and new business from operating companies.
ORI's Title Insurance saw double-digit premium growth in 2025 on strong commercial activity.
Shares of Old Republic International Corporation (ORI - Free Report) have gained 1.8% in the past year against the industry’s decline of 10.5%.
ORI has outperformed its peers, CNO Financial Group, Inc. (CNO - Free Report) , MetLife, Inc. (MET - Free Report) and Markel Group Inc. (MKL - Free Report) in the past year. CNO and MET have lost 3.5% and 15%, respectively, in the past year. Shares of MKL have gained 0.9% in the past year.
Image Source: Zacks Investment Research
With a market capitalization of $9.81 billion, the average number of shares traded in the last three months was 2 million.
ORI’s Attractive Valuation
The stock is trading at a discount to the industry. Its price-to-book value of 1.67X is lower than the industry average of 2.25X, the Finance sector’s 3.94X, and the Zacks S&P 500 Composite’s 7.46X.
Image Source: Zacks Investment Research
The company has a Value Score of A. This style score helps find the most attractive value stocks.
ORI’s Growth Projection Encourages
The Zacks Consensus Estimate for Old Republic International's 2026 earnings per share indicates a year-over-year increase of 3.1%. The consensus estimate for 2026 revenues is pegged at $9.72 billion, implying a year-over-year improvement of 8.5%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 3% and 6.8%, respectively, from the corresponding 2026 estimates.
Earnings Surprise History
Old Republic International surpassed earnings estimates in three of the last four quarters while missing in one, the average being 12.8%.
Average Target Price for ORI Suggests Upside
Based on short-term price targets offered by two analysts, the Zacks average price target is $42.50 per share. The average suggests a potential 7.8% upside from the last closing price.
Image Source: Zacks Investment Research
ORI’s Favorable Return on Capital
Return on equity (ROE) for the trailing 12 months was 16.2%, which compared favorably with the industry’s 15.3%. This reflects its efficiency in utilizing shareholders’ funds. ORI’s ROE has been increasing over the last few quarters.
Also, return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame. This reflects ORI’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 3%, better than the industry average of 2.1%.
Factors Acting in Favor of ORI
ORI has a diverse and decentralized portfolio of specialty insurance products and services.
In 2025, Specialty Insurance continued to expand its product capabilities beyond its traditional focus on commercial auto and workers’ compensation.
The Specialty Insurance segment of ORI should continue to benefit from a combination of premium rate increases, high renewal retention ratios and new business production, including an increasing contribution from new operating companies. Commercial auto and general liability continued to achieve significant rate increases.
Old Republic International’s Title Insurance segment's solid net premiums and fees earned continue to reflect strong activity in the commercial sector and a modest uptick in refinance activity. Both agency and directly produced premiums experienced double-digit growth in 2025, riding on lower interest rates and strong commercial business production.
Conclusion
As part of wealth distribution to shareholders, ORI also engages in regular buybacks. ORI’s dividend history is impressive. It has hiked dividends for the last 43 years. Its dividend yield of 3.1% appears attractive compared with the industry average of 2.7%, making it an attractive pick for yield-seeking investors.
View the Zacks #1 Rank List
Image: Bigstock
ORI Outperforms Industry, Trades at a Discount: How to Play the Stock
Key Takeaways
Shares of Old Republic International Corporation (ORI - Free Report) have gained 1.8% in the past year against the industry’s decline of 10.5%.
ORI has outperformed its peers, CNO Financial Group, Inc. (CNO - Free Report) , MetLife, Inc. (MET - Free Report) and Markel Group Inc. (MKL - Free Report) in the past year. CNO and MET have lost 3.5% and 15%, respectively, in the past year. Shares of MKL have gained 0.9% in the past year.
Image Source: Zacks Investment Research
With a market capitalization of $9.81 billion, the average number of shares traded in the last three months was 2 million.
ORI’s Attractive Valuation
The stock is trading at a discount to the industry. Its price-to-book value of 1.67X is lower than the industry average of 2.25X, the Finance sector’s 3.94X, and the Zacks S&P 500 Composite’s 7.46X.
Image Source: Zacks Investment Research
The company has a Value Score of A. This style score helps find the most attractive value stocks.
ORI’s Growth Projection Encourages
The Zacks Consensus Estimate for Old Republic International's 2026 earnings per share indicates a year-over-year increase of 3.1%. The consensus estimate for 2026 revenues is pegged at $9.72 billion, implying a year-over-year improvement of 8.5%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 3% and 6.8%, respectively, from the corresponding 2026 estimates.
Earnings Surprise History
Old Republic International surpassed earnings estimates in three of the last four quarters while missing in one, the average being 12.8%.
Average Target Price for ORI Suggests Upside
Based on short-term price targets offered by two analysts, the Zacks average price target is $42.50 per share. The average suggests a potential 7.8% upside from the last closing price.
Image Source: Zacks Investment Research
ORI’s Favorable Return on Capital
Return on equity (ROE) for the trailing 12 months was 16.2%, which compared favorably with the industry’s 15.3%. This reflects its efficiency in utilizing shareholders’ funds. ORI’s ROE has been increasing over the last few quarters.
Also, return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame. This reflects ORI’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 3%, better than the industry average of 2.1%.
Factors Acting in Favor of ORI
ORI has a diverse and decentralized portfolio of specialty insurance products and services.
In 2025, Specialty Insurance continued to expand its product capabilities beyond its traditional focus on commercial auto and workers’ compensation.
The Specialty Insurance segment of ORI should continue to benefit from a combination of premium rate increases, high renewal retention ratios and new business production, including an increasing contribution from new operating companies. Commercial auto and general liability continued to achieve significant rate increases.
Old Republic International’s Title Insurance segment's solid net premiums and fees earned continue to reflect strong activity in the commercial sector and a modest uptick in refinance activity. Both agency and directly produced premiums experienced double-digit growth in 2025, riding on lower interest rates and strong commercial business production.
Conclusion
As part of wealth distribution to shareholders, ORI also engages in regular buybacks. ORI’s dividend history is impressive. It has hiked dividends for the last 43 years. Its dividend yield of 3.1% appears attractive compared with the industry average of 2.7%, making it an attractive pick for yield-seeking investors.
However, a high debt level, an increase in interest expense and a lower asset base in a low-interest rate environment keep us cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.