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Reinsurance Group of America, Incorporated (RGA) Hit a 52 Week High, Can the Run Continue?
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Shares of Reinsurance Group (RGA - Free Report) have been strong performers lately, with the stock up 3.4% over the past month. The stock hit a new 52-week high of $258.53 in the previous session. Reinsurance Group has gained 25.8% since the start of the year compared to the 3.3% gain for the Zacks Finance sector and the 14.7% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2026, Reinsurance Group reported EPS of $8.89 versus consensus estimate of $6.51 while it beat the consensus revenue estimate by 0.95%.
For the current fiscal year, Reinsurance Group is expected to post earnings of $29.71 per share on $26.9 in revenues. This represents a 30.77% change in EPS on a 12.36% change in revenues. For the next fiscal year, the company is expected to earn $29.4 per share on $28.2 in revenues. This represents a year-over-year change of -1.06% and 4.81%, respectively.
Valuation Metrics
While Reinsurance Group has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Reinsurance Group has a Value Score of A. The stock's Growth and Momentum Scores are F and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 8.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.9X. On a trailing cash flow basis, the stock currently trades at 12X versus its peer group's average of 9.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Reinsurance Group an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Reinsurance Group currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Reinsurance Group meets the list of requirements. Thus, it seems as though Reinsurance Group shares could have a bit more room to run in the near term.
View the Zacks #1 Rank List
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Reinsurance Group of America, Incorporated (RGA) Hit a 52 Week High, Can the Run Continue?
Shares of Reinsurance Group (RGA - Free Report) have been strong performers lately, with the stock up 3.4% over the past month. The stock hit a new 52-week high of $258.53 in the previous session. Reinsurance Group has gained 25.8% since the start of the year compared to the 3.3% gain for the Zacks Finance sector and the 14.7% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2026, Reinsurance Group reported EPS of $8.89 versus consensus estimate of $6.51 while it beat the consensus revenue estimate by 0.95%.
For the current fiscal year, Reinsurance Group is expected to post earnings of $29.71 per share on $26.9 in revenues. This represents a 30.77% change in EPS on a 12.36% change in revenues. For the next fiscal year, the company is expected to earn $29.4 per share on $28.2 in revenues. This represents a year-over-year change of -1.06% and 4.81%, respectively.
Valuation Metrics
While Reinsurance Group has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Reinsurance Group has a Value Score of A. The stock's Growth and Momentum Scores are F and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 8.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.9X. On a trailing cash flow basis, the stock currently trades at 12X versus its peer group's average of 9.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Reinsurance Group an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Reinsurance Group currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Reinsurance Group meets the list of requirements. Thus, it seems as though Reinsurance Group shares could have a bit more room to run in the near term.