We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Here's Why W.R. Berkley (WRB) Stock is an Attractive Bet
Read MoreHide Full Article
W.R. Berkley (WRB - Free Report) is well-poised for growth, given its strong insurance business, growth in international business and prudent capital deployment.
The insurance business of the company has witnessed premium growth over the past years. In the first nine months of 2019, the insurance business earned 88.4% of net premium written, supported by several new start-up units in varied business lines. Better pricing also added to the top line of the company.
The emerging international business across United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia has been boosting premium growth over the years.
Banking on solid capital position, W.R. Berkley hikes dividend each year apart from paying out special dividend and buying back shares. In June 2019, the company approved a special dividend of 50 cents (the 10th straight special dividend) and 10% hike in regular dividend (the 14th consecutive dividend hike). Its dividend yield of 0.7% compares favorably with the industry average of 0.4%, making it an attractive pick for yield-seeking investors.
Estimates for W.R. Berkley have been revised upward over the past seven days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2020 earnings per share has moved 0.3% north in the said time frame.
The company has a decent earnings surprise history. It beat estimates in each of the trailing four quarters, with the average being 32.31%.
Shares of W.R. Berkley have rallied 39% in a year’s time, outperforming the industry’s increase of 15.6%.
This Zacks Rank #1 (Strong Buy) property and casualty insurer’s return on equity was 10.6% in the trailing 12-month period, higher than the industry average of 6.9%. Return on equity is a profitability measure that identifies the company’s efficiency in utilizing its shareholders’ funds.
The Zacks Consensus Estimate for 2019 earnings per share is pegged at $3.05, indicating increase of nearly 14.2% from the year-ago reported figure. The expected long-term earnings growth rate is 9%.
It has a favorable Growth Score of B. This style score identifies growth prospects of a company. Back-tested results show that stocks with Growth Score of A or B combined with Zacks Rank #1 or 2 (Buy) offer best growth opportunity.
Other Stocks to Consider
Some other top-ranked stocks from the space include Markel Corporation (MKL - Free Report) , Fidelity National Financial, Incorporation (FNF - Free Report) and Alleghany Corporation . While Markel and Fidelity National Financial sport a Zacks Rank #1, Alleghany carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Markel is a diverse financial holding company. It markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. The company beat earnings estimates in two of the last four reported quarters, the positive surprise being 17.05% on average.
Fidelity National Financial offers various insurance products in the United States. It offers title insurance, escrow, other title related services and home warranty insurance. The company beat earnings estimates in three of the last four reported quarters, the average being 8.67%.
Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company came up with average four-quarter positive surprise of 25.37%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Here's Why W.R. Berkley (WRB) Stock is an Attractive Bet
W.R. Berkley (WRB - Free Report) is well-poised for growth, given its strong insurance business, growth in international business and prudent capital deployment.
The insurance business of the company has witnessed premium growth over the past years. In the first nine months of 2019, the insurance business earned 88.4% of net premium written, supported by several new start-up units in varied business lines. Better pricing also added to the top line of the company.
The emerging international business across United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia has been boosting premium growth over the years.
Banking on solid capital position, W.R. Berkley hikes dividend each year apart from paying out special dividend and buying back shares. In June 2019, the company approved a special dividend of 50 cents (the 10th straight special dividend) and 10% hike in regular dividend (the 14th consecutive dividend hike). Its dividend yield of 0.7% compares favorably with the industry average of 0.4%, making it an attractive pick for yield-seeking investors.
Estimates for W.R. Berkley have been revised upward over the past seven days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2020 earnings per share has moved 0.3% north in the said time frame.
The company has a decent earnings surprise history. It beat estimates in each of the trailing four quarters, with the average being 32.31%.
Shares of W.R. Berkley have rallied 39% in a year’s time, outperforming the industry’s increase of 15.6%.
This Zacks Rank #1 (Strong Buy) property and casualty insurer’s return on equity was 10.6% in the trailing 12-month period, higher than the industry average of 6.9%. Return on equity is a profitability measure that identifies the company’s efficiency in utilizing its shareholders’ funds.
The Zacks Consensus Estimate for 2019 earnings per share is pegged at $3.05, indicating increase of nearly 14.2% from the year-ago reported figure. The expected long-term earnings growth rate is 9%.
It has a favorable Growth Score of B. This style score identifies growth prospects of a company. Back-tested results show that stocks with Growth Score of A or B combined with Zacks Rank #1 or 2 (Buy) offer best growth opportunity.
Other Stocks to Consider
Some other top-ranked stocks from the space include Markel Corporation (MKL - Free Report) , Fidelity National Financial, Incorporation (FNF - Free Report) and Alleghany Corporation . While Markel and Fidelity National Financial sport a Zacks Rank #1, Alleghany carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Markel is a diverse financial holding company. It markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. The company beat earnings estimates in two of the last four reported quarters, the positive surprise being 17.05% on average.
Fidelity National Financial offers various insurance products in the United States. It offers title insurance, escrow, other title related services and home warranty insurance. The company beat earnings estimates in three of the last four reported quarters, the average being 8.67%.
Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company came up with average four-quarter positive surprise of 25.37%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>