W.R. Berkley: A Strong Buy - Analyst Blog
11 Avril 2013 - 7:35PM
Zacks
On Apr 10, Zacks Investment Research upgraded W.R.
Berkley Corporation (WRB) to a Zacks Rank #1 (Strong
Buy).
Why the Upgrade?
W.R. Berkley Corp has been witnessing rising earnings estimates
since it reported solid fourth-quarter results.
Over the last 30 days, 4 of 9 estimates moved north, pushing the
Zacks Consensus Estimate for 2013 by 0.7%.
With respect to earnings trends, W.R. Berkley Corp delivered
positive earnings surprises in all 4 quarters of 2012, with an
average beat of 13.69%. The property and casualty insurer is likely
to beat earnings in the first quarter of 2013 because it has the
right combination of a positive Earnings ESP (Read: Zacks Earnings
ESP: A Better Method) and Zacks Rank. The company’s ESP (Expected
Surprise Prediction) currently is +2.74%.
The year-to-date return for the stock came in at 19.48%, higher
than that of S&P 500’s return of 11.33%.
The company has formed a division to write inland marine and
related property insurance and hired an industry veteran to head
the new operations in Mar 2013. The new unit is named Berkley Fire
& Marine Underwriters and is headquartered in Chicago. It will
act as an underwriting entity for all of W.R. Berkley subsidiaries
which carry a rating of A+ assigned by the credit rating agency,
A.M. Best Inc. This venture of W.R. Berkley is an effort to
strengthen its position and take advantage of the eventual positive
market turn.
W.R. Berkley Corp. is scheduled to release its first quarter
2013 earnings results on Apr 23 after the closing bell. The Zacks
Consensus Estimate for the first quarter is pegged at 73 cents
representing a year-over-year improvement of 0.46%.
We expect the absence of any major catastrophe event in the
first quarter to bolster the company’s performance.
Other Stocks to Consider
Other property and casualty insurers like Arch Capital
Group Ltd. (ACGL), Navigators Group Inc.
(NAVG) and AXIS Capital Holdings Limited (AXS),
carry a Zacks Rank #1 (Strong Buy) and are worth noting.
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis Report
NAVIGATORS GRP (NAVG): Free Stock Analysis Report
BERKLEY (WR) CP (WRB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Arch Capital (NASDAQ:ACGL)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Arch Capital (NASDAQ:ACGL)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024