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Here's Why Investors Should Hold Everest Group (EG) Stock
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Everest Group, Ltd.’s (EG - Free Report) product diversification, higher income from the fixed income portfolio, favorable estimates, strong renewal retention, prudent capital deployment and a solid capital position make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for Everest Group’s 2024 revenues is pegged at $17.41 billion, implying a year-over-year improvement of 19.1%. The consensus estimate for 2025 earnings per share and revenues indicates an increase of 10.9% and 11.2%, respectively, from the corresponding 2024 estimates.
Earnings have grown 40.4% in the past five years, better than the industry average of 9%.
Earnings Surprise History
EG surpassed earnings estimates in three of the last four quarters and missed in one, the average being 28.11%.
Zacks Rank & Price Performance
Everest Group currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 9.2% compared with the industry’s growth of 25.8%.
Image Source: Zacks Investment Research
Return on Equity
Everest Group’s annualized after-tax operating income return on equity was 19.8% in the first half of 2024, which expanded 90 basis points (bps) year over year. Its return on equity for the trailing 12 months is 24.1%, which expanded 920 bps year over year. This reflects its efficiency in utilizing its shareholders’ funds.
Style Score
The insurer has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Global presence, product diversification, rate increase and high retention rate continue to drive EG’s overall growth. The Insurance segment is poised to benefit from an increase in property and short tail business and a rise in specialty casualty business. On the other hand, leveraging opportunities stemming from the continued disruption and evolution of the reinsurance market should poise the Reinsurance segment for growth.
Net investment income stands to benefit from higher income from the fixed income portfolio, increase in limited partnership income, rise in dividend income from the equity portfolio and higher income from other invested assets. An improved interest rate environment adds to the upside.
Everest Group has a strong capital position, banking on sufficient cash generation capabilities and benefits from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. The multi-line insurer targets a 15-20% long-term debt leverage ratio for three years.
Everest Group is expected to benefit from its capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Everest Group targets a total shareholder return on equity of more than 17% from 2024 to 2026. It reflects the robust and well-diversified earnings power of Everest. EG expects to make consistent payouts, along with buybacks, given its disciplined capital management strategy and a strong capital balance.
However, the insurer has been experiencing an increase in expenses due to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees and other underwriting expenses. The company should continue to generate revenues at a higher magnitude than expenses.
Radian Group has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 21.3%. In the past year, shares of RDN have jumped 33.7%.
The Zacks Consensus Estimate for RDN’s 2024 and 2025 revenues implies year-over-year growth of 6.2% and 5.5%, respectively.
Old Republic International has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 9%. In the past year, shares of ORI have climbed 29.6%.
The Zacks Consensus Estimate for ORI’s 2024 and 2025 earnings implies year-over-year growth of 7.6% and 4.4%, respectively.
EverQuote has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 144.9%. In the past year, shares of EVER have rallied 261.2%.
The Zacks Consensus Estimate for EVER’s 2024 and 2025 earnings implies year-over-year growth of 137% and 43.8%, respectively.
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Here's Why Investors Should Hold Everest Group (EG) Stock
Everest Group, Ltd.’s (EG - Free Report) product diversification, higher income from the fixed income portfolio, favorable estimates, strong renewal retention, prudent capital deployment and a solid capital position make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for Everest Group’s 2024 revenues is pegged at $17.41 billion, implying a year-over-year improvement of 19.1%. The consensus estimate for 2025 earnings per share and revenues indicates an increase of 10.9% and 11.2%, respectively, from the corresponding 2024 estimates.
Earnings have grown 40.4% in the past five years, better than the industry average of 9%.
Earnings Surprise History
EG surpassed earnings estimates in three of the last four quarters and missed in one, the average being 28.11%.
Zacks Rank & Price Performance
Everest Group currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 9.2% compared with the industry’s growth of 25.8%.
Image Source: Zacks Investment Research
Return on Equity
Everest Group’s annualized after-tax operating income return on equity was 19.8% in the first half of 2024, which expanded 90 basis points (bps) year over year. Its return on equity for the trailing 12 months is 24.1%, which expanded 920 bps year over year. This reflects its efficiency in utilizing its shareholders’ funds.
Style Score
The insurer has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Global presence, product diversification, rate increase and high retention rate continue to drive EG’s overall growth. The Insurance segment is poised to benefit from an increase in property and short tail business and a rise in specialty casualty business. On the other hand, leveraging opportunities stemming from the continued disruption and evolution of the reinsurance market should poise the Reinsurance segment for growth.
Net investment income stands to benefit from higher income from the fixed income portfolio, increase in limited partnership income, rise in dividend income from the equity portfolio and higher income from other invested assets. An improved interest rate environment adds to the upside.
Everest Group has a strong capital position, banking on sufficient cash generation capabilities and benefits from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. The multi-line insurer targets a 15-20% long-term debt leverage ratio for three years.
Everest Group is expected to benefit from its capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Everest Group targets a total shareholder return on equity of more than 17% from 2024 to 2026. It reflects the robust and well-diversified earnings power of Everest. EG expects to make consistent payouts, along with buybacks, given its disciplined capital management strategy and a strong capital balance.
However, the insurer has been experiencing an increase in expenses due to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees and other underwriting expenses. The company should continue to generate revenues at a higher magnitude than expenses.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Radian Group Inc. (RDN - Free Report) , Old Republic International Corporation (ORI - Free Report) and EverQuote, Inc. (EVER - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radian Group has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 21.3%. In the past year, shares of RDN have jumped 33.7%.
The Zacks Consensus Estimate for RDN’s 2024 and 2025 revenues implies year-over-year growth of 6.2% and 5.5%, respectively.
Old Republic International has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 9%. In the past year, shares of ORI have climbed 29.6%.
The Zacks Consensus Estimate for ORI’s 2024 and 2025 earnings implies year-over-year growth of 7.6% and 4.4%, respectively.
EverQuote has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 144.9%. In the past year, shares of EVER have rallied 261.2%.
The Zacks Consensus Estimate for EVER’s 2024 and 2025 earnings implies year-over-year growth of 137% and 43.8%, respectively.