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RenaissanceRe Holdings Ltd. (RNR) Hits Fresh High: Is There Still Room to Run?
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Shares of RenaissanceRe (RNR - Free Report) have been strong performers lately, with the stock up 4.5% over the past month. The stock hit a new 52-week high of $269.61 in the previous session. RenaissanceRe has gained 37.3% since the start of the year compared to the 17.3% move for the Zacks Finance sector and the 27.1% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 24, 2024, RenaissanceRe reported EPS of $12.41 versus consensus estimate of $10.88 while it beat the consensus revenue estimate by 0.82%.
For the current fiscal year, RenaissanceRe is expected to post earnings of $39.01 per share on $11.51 billion in revenues. This represents a 3.92% change in EPS on a 32.25% change in revenues. For the next fiscal year, the company is expected to earn $35.46 per share on $11.81 billion in revenues. This represents a year-over-year change of -9.11% and 2.59%, respectively.
Valuation Metrics
RenaissanceRe may be at a 52-week high right now, but what might the future hold for the stock? 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
RenaissanceRe has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 6.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.7X. On a trailing cash flow basis, the stock currently trades at 8.2X versus its peer group's average of 13.1X. Additionally, the stock has a PEG ratio of 1.47. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, RenaissanceRe 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 RenaissanceRe meets the list of requirements. Thus, it seems as though RenaissanceRe shares could have potential in the weeks and months to come.
How Does RNR Stack Up to the Competition?
Shares of RNR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NMI Holdings Inc (NMIH - Free Report) . NMIH has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. NMI Holdings Inc beat our consensus estimate by 15.38%, and for the current fiscal year, NMIH is expected to post earnings of $4.50 per share on revenue of $650.03 million.
Shares of NMI Holdings Inc have gained 1.1% over the past month, and currently trade at a forward P/E of 9.08X and a P/CF of 9.85X.
The Insurance - Property and Casualty industry is in the top 8% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RNR and NMIH, even beyond their own solid fundamental situation.
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RenaissanceRe Holdings Ltd. (RNR) Hits Fresh High: Is There Still Room to Run?
Shares of RenaissanceRe (RNR - Free Report) have been strong performers lately, with the stock up 4.5% over the past month. The stock hit a new 52-week high of $269.61 in the previous session. RenaissanceRe has gained 37.3% since the start of the year compared to the 17.3% move for the Zacks Finance sector and the 27.1% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 24, 2024, RenaissanceRe reported EPS of $12.41 versus consensus estimate of $10.88 while it beat the consensus revenue estimate by 0.82%.
For the current fiscal year, RenaissanceRe is expected to post earnings of $39.01 per share on $11.51 billion in revenues. This represents a 3.92% change in EPS on a 32.25% change in revenues. For the next fiscal year, the company is expected to earn $35.46 per share on $11.81 billion in revenues. This represents a year-over-year change of -9.11% and 2.59%, respectively.
Valuation Metrics
RenaissanceRe may be at a 52-week high right now, but what might the future hold for the stock? 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
RenaissanceRe has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 6.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.7X. On a trailing cash flow basis, the stock currently trades at 8.2X versus its peer group's average of 13.1X. Additionally, the stock has a PEG ratio of 1.47. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, RenaissanceRe 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 RenaissanceRe meets the list of requirements. Thus, it seems as though RenaissanceRe shares could have potential in the weeks and months to come.
How Does RNR Stack Up to the Competition?
Shares of RNR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NMI Holdings Inc (NMIH - Free Report) . NMIH has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. NMI Holdings Inc beat our consensus estimate by 15.38%, and for the current fiscal year, NMIH is expected to post earnings of $4.50 per share on revenue of $650.03 million.
Shares of NMI Holdings Inc have gained 1.1% over the past month, and currently trade at a forward P/E of 9.08X and a P/CF of 9.85X.
The Insurance - Property and Casualty industry is in the top 8% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RNR and NMIH, even beyond their own solid fundamental situation.