RenaissanceRe (RNR) Soars 3.0%: Is Further Upside Left in the Stock?
RenaissanceRe (RNR) shares rallied 3% in the last trading session to close at $261.47. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.9% loss over the past four weeks.
The upside can be attributed to RenaissanceRe's well-performing Property and Casualty & Specialty segments. Riding on the segments’ performance, overall net premiums earned improved 43.8% year over year in the first half of 2024. Market dislocation, rate increases and higher reinsurance demand, particularly in Florida, support its premium growth.
Strategic acquisitions, like that of Validus Re, enhance global scale and profitability while divestitures streamline operations. With a sound cash balance, RenaissanceRe is well-positioned for growth and shareholder returns. It boasts a solid history of hiking dividends for straight 29 years.
This insurance company is expected to post quarterly earnings of $4.60 per share in its upcoming report, which represents a year-over-year change of -44.8%. Revenues are expected to be $2.84 billion, up 37.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For RenaissanceRe, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RNR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
RenaissanceRe belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, CCC Intelligent Solutions Holdings Inc. (CCCS), closed the last trading session 3.1% higher at $10.78. Over the past month, CCCS has returned -0.4%.
CCC Intelligent Solutions' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. Compared to the company's year-ago EPS, this represents no change. CCC Intelligent Solutions currently boasts a Zacks Rank of #3 (Hold).
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RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report
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