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AXIS Capital (AXS) Up 29% in 6 Months: More Upside Left?
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Shares of AXIS Capital Holdings Limited (AXS - Free Report) have gained 29.3% in the past six months, outperforming the industry’s increase of 24.4% and the Finance sector’s increase of 2.6%. The S&P 500 composite index has gained 4.3% in the said time frame. With a market capitalization of $5.2 billion, the average volume of shares traded in the last three months was 0.6 million.
Image Source: Zacks Investment Research
Its focus on building Specialty Insurance, Reinsurance as well as Accident and Health insurance portfolio, strong market presence, better pricing, and margin expansion continue to drive AXS.
AXIS Capital has a decent surprise history, beating earnings estimates in the last seven quarters.
Annualized return on average common equity was 12.2% in 2021 against the year-ago figure of negative 3.2%. The industry average was 5.6%.
Can AXS Retain the Momentum?
The Zacks Consensus Estimate for 2023 has moved 2.6% north in the past 60 days, reflecting analyst optimism.
The Zacks Consensus Estimate for AXIS Capital’s 2022 earnings is pegged at $5.90, indicating a 15.2% increase from the year-ago reported figure on 5.9% higher revenues of $5.5 billion. The consensus estimate for 2023 earnings is pegged at $6.26, indicating a 6.2% increase from the year-ago reported figure on 6.9% higher revenues of $5.9 billion.
The long-term earnings growth rate is currently pegged at 5%. AXIS Capital has a favorable Growth Score of B.
AXIS Capital continues to build on its Specialty Insurance, Reinsurance and Accident and Health portfolio, thereby improving portfolio mix. This leading specialty insurer and a global reinsurer aims for leadership in specialty risks.
This Zacks Rank #3 (Hold) insurer remains focused on business lines that are likely to provide solid double-digit ROE opportunities. Thus, AXIS Capital is growing its verticals into pet insurance, marine cargo, cyber and renewable energy insurance businesses.
Rate improvement, prudent underwriting and PML reductions supported by third-party capital are likely to fuel improved risk-adjusted return. AXIS Capital remains focused on driving margin expansion.
Though the interest rate has been hiked by 25 basis points in the recent FOMC meeting, the insurer expects lower levels of favorable development, social inflation and the COVID-19 pandemic to drive pricing improvements through 2022 and beyond.
AXIS Capital eyes a low-90s combined ratio to fuel attractive ROE and has $100 million share buyback program under its authorization to return value to shareholders.
This insurer has an impressive VGM Score of A. This helps to identify stocks with the most attractive value, growth and momentum.
Solid Dividend History
AXIS Capital has been hiking dividends for the last 18 years at a nine-year CAGR (2013 – 2021) of 5.9%, driven by solid earnings. Its dividend yield is currently 3%, way above the industry average of 0.3%. AXS boasts one of the highest dividend yields among its peers.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance sector are Kinsale Capital Group (KNSL - Free Report) , United Fire Group (UFCS - Free Report) and American Financial Group (AFG - Free Report) . While Kinsale Capital and United Fire currently sport a Zacks Rank #1 (Strong Buy), American Financial Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. In the past year, Kinsale Capital has rallied 36.1%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings has moved 5.9% and 8.2% north, respectively, in the past 60 days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. In the past year, UFCS stock has declined 7.7%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 60 days.
The bottom line of American Financial surpassed earnings estimates in each of the last four quarters, the average being 39.58%. In the past year, the insurer has rallied 28.8%.
The Zacks Consensus Estimate for American Financial’s 2022 and 2023 earnings has moved 3.3% and 8.2% north, respectively, in the past 60 days.
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AXIS Capital (AXS) Up 29% in 6 Months: More Upside Left?
Shares of AXIS Capital Holdings Limited (AXS - Free Report) have gained 29.3% in the past six months, outperforming the industry’s increase of 24.4% and the Finance sector’s increase of 2.6%. The S&P 500 composite index has gained 4.3% in the said time frame. With a market capitalization of $5.2 billion, the average volume of shares traded in the last three months was 0.6 million.
Image Source: Zacks Investment Research
Its focus on building Specialty Insurance, Reinsurance as well as Accident and Health insurance portfolio, strong market presence, better pricing, and margin expansion continue to drive AXS.
AXIS Capital has a decent surprise history, beating earnings estimates in the last seven quarters.
Annualized return on average common equity was 12.2% in 2021 against the year-ago figure of negative 3.2%. The industry average was 5.6%.
Can AXS Retain the Momentum?
The Zacks Consensus Estimate for 2023 has moved 2.6% north in the past 60 days, reflecting analyst optimism.
The Zacks Consensus Estimate for AXIS Capital’s 2022 earnings is pegged at $5.90, indicating a 15.2% increase from the year-ago reported figure on 5.9% higher revenues of $5.5 billion. The consensus estimate for 2023 earnings is pegged at $6.26, indicating a 6.2% increase from the year-ago reported figure on 6.9% higher revenues of $5.9 billion.
The long-term earnings growth rate is currently pegged at 5%. AXIS Capital has a favorable Growth Score of B.
AXIS Capital continues to build on its Specialty Insurance, Reinsurance and Accident and Health portfolio, thereby improving portfolio mix. This leading specialty insurer and a global reinsurer aims for leadership in specialty risks.
This Zacks Rank #3 (Hold) insurer remains focused on business lines that are likely to provide solid double-digit ROE opportunities. Thus, AXIS Capital is growing its verticals into pet insurance, marine cargo, cyber and renewable energy insurance businesses.
Rate improvement, prudent underwriting and PML reductions supported by third-party capital are likely to fuel improved risk-adjusted return. AXIS Capital remains focused on driving margin expansion.
Though the interest rate has been hiked by 25 basis points in the recent FOMC meeting, the insurer expects lower levels of favorable development, social inflation and the COVID-19 pandemic to drive pricing improvements through 2022 and beyond.
AXIS Capital eyes a low-90s combined ratio to fuel attractive ROE and has $100 million share buyback program under its authorization to return value to shareholders.
This insurer has an impressive VGM Score of A. This helps to identify stocks with the most attractive value, growth and momentum.
Solid Dividend History
AXIS Capital has been hiking dividends for the last 18 years at a nine-year CAGR (2013 – 2021) of 5.9%, driven by solid earnings. Its dividend yield is currently 3%, way above the industry average of 0.3%. AXS boasts one of the highest dividend yields among its peers.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance sector are Kinsale Capital Group (KNSL - Free Report) , United Fire Group (UFCS - Free Report) and American Financial Group (AFG - Free Report) . While Kinsale Capital and United Fire currently sport a Zacks Rank #1 (Strong Buy), American Financial Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. In the past year, Kinsale Capital has rallied 36.1%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings has moved 5.9% and 8.2% north, respectively, in the past 60 days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. In the past year, UFCS stock has declined 7.7%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 60 days.
The bottom line of American Financial surpassed earnings estimates in each of the last four quarters, the average being 39.58%. In the past year, the insurer has rallied 28.8%.
The Zacks Consensus Estimate for American Financial’s 2022 and 2023 earnings has moved 3.3% and 8.2% north, respectively, in the past 60 days.