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Baldwin Insurance Group, Inc. (BWIN) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of The Baldwin Insurance Group (BWIN - Free Report) ? Shares have been on the move with the stock up 12% over the past month. The stock hit a new 52-week high of $52.04 in the previous session. The Baldwin Insurance Group has gained 114.4% since the start of the year compared to the 18.1% move for the Zacks Finance sector and the 24.4% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has a great 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 August 6, 2024, The Baldwin Insurance Group reported EPS of $0.34 versus consensus estimate of $0.33 while it beat the consensus revenue estimate by 1.25%.
For the current fiscal year, The Baldwin Insurance Group is expected to post earnings of $1.55 per share on $1.39 billion in revenues. This represents a 38.39% change in EPS on a 14.13% change in revenues. For the next fiscal year, the company is expected to earn $2.05 per share on $1.57 billion in revenues. This represents a year-over-year change of 32.26% and 13.18%, respectively.
Valuation Metrics
The Baldwin Insurance Group 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 they provide investors with an additional way to sort 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.
The Baldwin Insurance Group has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 33.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 32.6X versus its peer group's average of 10.8X. Additionally, the stock has a PEG ratio of 1. 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, The Baldwin Insurance Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
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 The Baldwin Insurance Group passes the test. Thus, it seems as though The Baldwin Insurance Group shares could still be poised for more gains ahead.
How Does BWIN Stack Up to the Competition?
Shares of BWIN 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 Reinsurance Group of America, Incorporated (RGA - Free Report) . RGA has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Reinsurance Group of America, Incorporated beat our consensus estimate by 10.93%, and for the current fiscal year, RGA is expected to post earnings of $21.70 per share on revenue of $21.85 billion.
Shares of Reinsurance Group of America, Incorporated have gained 3.6% over the past month, and currently trade at a forward P/E of 10.14X and a P/CF of 11.61X.
The Insurance - Life Insurance industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BWIN and RGA, even beyond their own solid fundamental situation.
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Baldwin Insurance Group, Inc. (BWIN) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of The Baldwin Insurance Group (BWIN - Free Report) ? Shares have been on the move with the stock up 12% over the past month. The stock hit a new 52-week high of $52.04 in the previous session. The Baldwin Insurance Group has gained 114.4% since the start of the year compared to the 18.1% move for the Zacks Finance sector and the 24.4% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has a great 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 August 6, 2024, The Baldwin Insurance Group reported EPS of $0.34 versus consensus estimate of $0.33 while it beat the consensus revenue estimate by 1.25%.
For the current fiscal year, The Baldwin Insurance Group is expected to post earnings of $1.55 per share on $1.39 billion in revenues. This represents a 38.39% change in EPS on a 14.13% change in revenues. For the next fiscal year, the company is expected to earn $2.05 per share on $1.57 billion in revenues. This represents a year-over-year change of 32.26% and 13.18%, respectively.
Valuation Metrics
The Baldwin Insurance Group 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 they provide investors with an additional way to sort 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.
The Baldwin Insurance Group has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 33.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 32.6X versus its peer group's average of 10.8X. Additionally, the stock has a PEG ratio of 1. 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, The Baldwin Insurance Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
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 The Baldwin Insurance Group passes the test. Thus, it seems as though The Baldwin Insurance Group shares could still be poised for more gains ahead.
How Does BWIN Stack Up to the Competition?
Shares of BWIN 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 Reinsurance Group of America, Incorporated (RGA - Free Report) . RGA has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Reinsurance Group of America, Incorporated beat our consensus estimate by 10.93%, and for the current fiscal year, RGA is expected to post earnings of $21.70 per share on revenue of $21.85 billion.
Shares of Reinsurance Group of America, Incorporated have gained 3.6% over the past month, and currently trade at a forward P/E of 10.14X and a P/CF of 11.61X.
The Insurance - Life Insurance industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BWIN and RGA, even beyond their own solid fundamental situation.