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Axis Capital Holdings Limited (AXS) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Axis Capital (AXS - Free Report) ? Shares have been on the move with the stock up 7.1% over the past month. The stock hit a new 52-week high of $82.34 in the previous session. Axis Capital has gained 48.4% since the start of the year compared to the 18.1% move for the Zacks Finance sector and the 29.1% 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 30, 2024, Axis Capital reported EPS of $2.93 versus consensus estimate of $2.52 while it beat the consensus revenue estimate by 2.86%.
For the current fiscal year, Axis Capital is expected to post earnings of $10.71 per share on $6.13 billion in revenues. This represents an 8.73% change in EPS on a 7.18% change in revenues. For the next fiscal year, the company is expected to earn $11.64 per share on $6.73 billion in revenues. This represents a year-over-year change of 8.68% and 9.87%, respectively.
Valuation Metrics
Axis Capital 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.
Axis Capital has a Value Score of A. 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 7.7X 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 7.8X versus its peer group's average of 13.3X. Additionally, the stock has a PEG ratio of 0.28. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Axis Capital 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 Axis Capital meets the list of requirements. Thus, it seems as though Axis Capital shares could have a bit more room to run in the near term.
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Axis Capital Holdings Limited (AXS) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Axis Capital (AXS - Free Report) ? Shares have been on the move with the stock up 7.1% over the past month. The stock hit a new 52-week high of $82.34 in the previous session. Axis Capital has gained 48.4% since the start of the year compared to the 18.1% move for the Zacks Finance sector and the 29.1% 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 30, 2024, Axis Capital reported EPS of $2.93 versus consensus estimate of $2.52 while it beat the consensus revenue estimate by 2.86%.
For the current fiscal year, Axis Capital is expected to post earnings of $10.71 per share on $6.13 billion in revenues. This represents an 8.73% change in EPS on a 7.18% change in revenues. For the next fiscal year, the company is expected to earn $11.64 per share on $6.73 billion in revenues. This represents a year-over-year change of 8.68% and 9.87%, respectively.
Valuation Metrics
Axis Capital 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.
Axis Capital has a Value Score of A. 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 7.7X 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 7.8X versus its peer group's average of 13.3X. Additionally, the stock has a PEG ratio of 0.28. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Axis Capital 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 Axis Capital meets the list of requirements. Thus, it seems as though Axis Capital shares could have a bit more room to run in the near term.