Everest Group, Ltd.’s EG 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.
The Bright Horizon: Growth Projections
The consensus estimate for Everest Group’s 2025 earnings per share indicates a year-over-year increase of 10.1% from the consensus estimate of 2024. The consensus estimate for 2025 revenues is pinned at $19.27 billion, implying a year-over-year improvement of 9.5% from the consensus mark of 2024.
Moving Forward: Northbound Estimate Revision
The Zacks Consensus Estimate for EG’s 2024 and 2025 earnings has moved 0.1% and 2.2% north, respectively, in the past 60 days. This should instill investors’ confidence in the stock.
Past Performance: Earnings Surprise History
EG surpassed earnings estimates in three of the last four quarters and missed in one, the average being 34.67%.
Ratings and Progress: Zacks Rank & Price Performance
Everest Group currently carries a Zacks Rank #3 (Hold). Year to date, the stock has gained 7.8% compared with the industry’s growth of 8.7%.
Image Source: Zacks Investment Research
The Value of Equity: Return on Equity
Everest Group’s annualized operating income return on equity was 20.9% in 2023, which expanded 1,490 basis points (bps) year over year. Its return on equity for the trailing 12 months is 25.1%, which expanded 1,270 bps year over year and compared favorably with the industry average of 13.7%.
The Essence of Style: 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.
Accelerating Growth: Business Tailwinds
Global presence, product diversification, rate increase, and high retention rate continue to drive EG’s overall growth. The company’s strong capital position is a solid anchor for growth, exemplifying prudent management.
Promising Investments: Looking Ahead
Everest Group’s consistent increase in dividends and its ambitious targets for total shareholder return on equity demonstrate a commitment to delivering robust and well-diversified earnings power.
Exploring Options: Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Enact Holdings ACT, EverQuote, Inc. EVER and Horace Mann Educators Corporation HMN. These companies portray strong potential in the current market context.
