Home Most Popular Investing The Allure of Assurant (AIZ) Stocks Amidst Promising Financial Prospects

The Allure of Assurant (AIZ) Stocks Amidst Promising Financial Prospects

The Allure of Assurant (AIZ) Stocks Amidst Promising Financial Prospects

Assurant, Inc. AIZ is positioned for growth with its robust Global Lifestyle business, flourishing fee-based capital-light ventures, and efficient capital management strategies.

Earnings Predictions

Analysts project Assurant’s earnings per share for 2024 at $16.02, a 3.4% increase from the previous year, driven by a 4.1% surge in revenues to $11.66 billion.

Earnings Track Record

Assurant has consistently outperformed earnings expectations, surpassing estimates in the past four quarters by an impressive average of 42.15%.

Positive Estimate Revisions

Over the last 30 days, the consensus outlook for 2024 and 2025 earnings has risen by 5.9% and 6.4%, respectively, indicating a favorable outlook among investors.

Zacks Rank

Assurant currently holds a Zacks Rank #2 (Buy). In the past year, AIZ shares have climbed 44.6%, significantly outpacing the industry’s growth of 5.6%.

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Style Score

AIZ boasts a VGM Score of B, aiding in identifying stocks with excellent value, growth potential, and momentum. Historical data suggests that stocks with a VGM Score of A or B, coupled with a Zacks Rank #1 or 2, tend to offer superior returns.

Compelling Valuation

Assurant’s stock is currently trading at a discount compared to industry peers, with a price-to-book value of 1.98X, lower than the industry average of 2.73X. This presents an opportune moment to invest in the stock before valuation levels increase.

AIZ also boasts an impressive Value Score of B, historically indicating strong returns for value stocks.

Favorable Business Trends

Assurant’s focus on expanding fee-based capital-light ventures, currently contributing 52% of segmental revenues, sets a positive growth trajectory. Management anticipates double-digit growth from these ventures in the long term.

Notably, increased performance in the Homeowners segment, boosted by higher lender-placed net earned premiums, is expected to drive results in Global Housing. Similarly, growth in Connected Living and Global Automotive sectors is set to propel Global Lifestyle forward.

The company is diligently enhancing the Connected Living platform, introducing innovative products, forging new partnerships, with aims to double Connected Living margins to 8% in the long run.

Rising net investment income, propelled by higher yields on fixed-maturity securities, is expected to further bolster earnings.

Assurant’s robust capital management strategy is evident in its 19 consecutive years of dividend increases. Additionally, the company repurchased shares worth $10 million from Jan 1 through Feb 2, 2024, with $664 million still available under current repurchase authorizations. Estimated share repurchases for 2024 range between $200 million and $300 million, underlining solid earnings and free cash flow conversion exceeding 100% for many quarters.

Other Investment Opportunities

Other top-ranked stocks in the multi-line insurance industry include Enact Holdings ACT, CNO Financial Group CNO, and MGIC Investment Corporation MTG. Enact Holdings and CNO Financial hold Zacks Rank #1, whereas MGIC Investment boasts a Zacks Rank #2. For a comprehensive list of today’s Zacks #1 Rank stocks, click here.

Enact Holdings has an outstanding four-quarter average earnings surprise of 24.59%, accompanied by a 14.2% rise in shares over the past year.

On the other hand, CNO Financial’s 2024 and 2025 earnings estimates have seen a respective increase of 2.5% and 7.1% from the previous year, with shares rising by 4.5% in the past year.

MGIC Investment delivered a remarkable four-quarter average earnings surprise of 14.84%, with shares surging by 44.6% in the past year.

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The author’s opinions do not necessarily reflect those of Nasdaq, Inc.