Before we dive into the tumultuous waters of financial markets, let’s take a moment to marvel at the majestic ship known as Reinsurance Group of America, Incorporated (RGA). This stalwart vessel has weathered many storms and is set to chart a new course in the choppy seas of the financial industry. Let’s unfurl the sails and navigate through the compelling reasons to consider holding onto RGA stock.
Growth Projections: Full Steam Ahead
The Zacks Consensus Estimate for Reinsurance Group’s 2023 earnings stands at a robust $18.98 per share, signaling a remarkable 31.5% surge from the previous year’s figure. Furthermore, the anticipated 8% surge in revenues to $18.11 billion adds wind to the stock’s sails, propelling it forward.
Estimate Revision: Sailing in Favorable Winds
Analysts’ optimism towards RGA stock is palpable, with the Zacks Consensus Estimate for 2023 and 2024 experiencing upward revisions of 4.5% and 1.2%, respectively, in the past month.
Although the seas may have been tumultuous at times, RGA has triumphed, beating earnings estimates in two of the last four quarters. The average earnings surprise stands at an impressive 18.81%, showcasing the ship’s resilience.
Zacks Rank & Price Performance: Steadfast Amidst the Storm
Revealing its fortitude, RGA proudly carries a Zacks Rank #3 (Hold) and has outperformed the industry’s rise, boasting a 16.9% gain in the past year.
Image Source: Zacks Investment Research
Style Score: Anchored by Stellar Value
RGA boasts a VGM Score of A, exemplifying its attractive value, impressive growth potential, and promising momentum as it sails through the financial seas.
RGA’s ROE of 17.4% showcases the adeptness with which it leverages shareholders’ funds, expanding 820 basis points year over year. This illustrates the ship’s prowess in efficiently managing capital.
Business Tailwinds: Riding the Crests
The U.S., Latin America, Canada, Europe, Middle East, and Africa segments serve as strong currents, propelling Reinsurance Group forward. Amidst this, the EMEA segment is set to gain from higher investments and increased new business volumes, while the U.S. Asset-Intensive business is poised for growth from various sources, including favorable longevity experience and robust investment income.
Additionally, RGA’s net investment income has been steadily rising, supported by a stronger asset base and improved rates on new investments. Its robust capital mix and effective capital management further bolster its stability in the financial seas.
Stocks to Consider: Rays of Hope on the Horizon
If you’re considering broadening your portfolio, keeping an eye on American Equity Investment Life Holding Company (AEL), Primerica, Inc. (PRI), and GoHealth, Inc. (GOCO) could prove beneficial. Each of these entities carries a Zacks Rank #2 (Buy) and presents promising opportunities for investors.
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.