We expect property and casualty insurer
) to beat expectations when it reports third-quarter 2013 results
on Oct 23.
Why a Likely Positive Surprise?
Our proven model shows that ACE Limited is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Expected Surprise Prediction or
, which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate, is +2.73%. This is
noteworthy and is indicative of a likely positive earnings
Zacks Rank #2 (Buy):
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3
(Hold) have a significantly higher chance of beating earnings.
The Sell-rated stocks (carrying a Zacks Rank #4 or 5) going into
an earnings announcement should never be considered, especially
when the company is seeing negative estimate revisions.
The combination of a Zacks Rank #2 (Buy) and an ESP of 2.73%
makes us confident of a positive earnings beat by ACE Limited on
What is Driving the Better-than-Expected
Global expansion, prudent acquisition strategies and the improved
environment of the property and casualty sector is expected to
lead to a positive earnings surprise for ACE Limited in the
forthcoming quarter. The company also remains focused on
launching products to enhance its current portfolio.
ACE Limited delivered positive surprises in the last four
quarters with an average beat of 12.44%, with the highest
surprise coming in at 19.27% in the second quarter of 2013. This
was made possible by the company's strong capital position as
well as solid underwriting performances & growth in both U.S.
and international operations.
Other Stocks to Consider
ACE Limited is not the only firm looking forward to outperform
this earnings season. We also see likely earnings beats coming
from these 3 industry peers:
The Hanover Insurance Group Inc.
), earnings ESP of +15.00% and a Zacks Rank #1 (Strong Buy).
Allied World Assurance Company Holdings, AG
), earnings ESP of +12.12% and a Zacks Rank #1 (Strong Buy).
Platinum Underwriters Holdings Ltd.
), earnings ESP of +4.43% and a Zacks Rank #1 (Strong Buy).
ACE LIMITED (ACE): Free Stock Analysis Report
ALLIED WORLD AS (AWH): Free Stock Analysis
PLATINUM UNDRWT (PTP): Free Stock Analysis
HANOVER INSURAN (THG): Free Stock Analysis
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