Stocks To Buy And Watch: Insurance Firm Expects 94% Earnings Growth

Stocks To Buy And Watch: Insurance Firm Expects 94% Earnings Growth

Everest Group (EG), one of Investor’s Business Daily’s top stocks to buy and watch, is holding up inside a 5% buy zone, despite overall market pressure.


The insurance stock has pulled back this week alongside the market. But Everest shares are showing relative strength, as indicated by a rising RS line.

A recent 34-week-long consolidation shows a buy point of 395. The stock broke out from this entry on Oct. 12. Everest’s buy zone extends to 414.75.

Shares pulled back this week and are getting support at the 10-day line, which coincides with the buy point. Investors should note that the pullback occurred in stronger-than-average volume, which isn’t ideal.

Stocks To Buy And Watch: High Ratings

Meanwhile, earnings are due on Thursday, making it difficult to buy so close to a major news event. The stock shows appealing IBD Ratings, with a perfect Composite Rating of 99, an EPS Rating 95 and an RS Rating of 93.

The Property-Casualty Insurance group currently ranks No. 40 out of IBD’s 197 groups, a good sign among top stocks to buy. The top 40 groups are an ideal place to be looking for new portfolio candidates.

Everest Group touts five decades of reinsurance leadership and an expanding presence in the global primary insurance market. Earlier this year, the company changed its name to Everest Group to reflect a recent company rebrand.

“Everest’s new name and stock ticker reflect the evolution of our value proposition,” Chief Executive Juan C. Andrade said in a press release at the time.

Earnings Growth Of 94%

Everest is among the largest reinsurance companies globally. Reinsurance is essentially insurance for insurance companies.

The firm also has been expanding its specialty offerings with products such as workers’ compensation insurance, short-tail property coverage, and accident and health benefits, among others.

In 2023, analysts expect year-over-year earnings growth of 94%, driven by stronger pricing. Another 13% gain is expected in 2024.

In its two most recent quarters, the firm has shown accelerating per-share earnings growth, critical among top stocks to buy. Earnings growth went from 10% in the first quarter to 55% in Q2. Revenue grew 13% and 29%, respectively, during those periods.

As for its third-quarter results, due Oct. 26, analysts expect earnings of $10.86 a share on revenue of $4 billion.


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