We expect property and casualty insurer
AXIS Capital Holdings Limited
) to beat expectations when it reports fourth-quarter 2013
results on Feb 4, 2014.
ASPEN INS HLDGS (AHL): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
CNA FINL CORP (CNA): Free Stock Analysis
PROASSURANCE CP (PRA): Free Stock Analysis
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Why a Likely Positive Surprise?
Our proven model shows that AXIS Capital 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 +1.81%. This is
noteworthy and is indicative of a likely positive earnings
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 #3 and an ESP of +1.81% makes us
confident of a positive earnings beat by AXIS Capital on Feb 4.
What is Driving the Better-than-Expected
We expect AXIS Capital's strong operational strategies along with
new business and product generation, and platform expansion to
aid its bottom-line growth going forward.
AXIS Syndicate 1686, approved by the franchise board of Lloyd,
marked another milestone in the expansion of AXIS Capital's
global underwriting platform. AXIS Syndicate gives AXIS Capital
the access to worldwide licenses of Lloyd and an enhanced
Lower share count due to share buybacks are expected to boost the
Other Stocks to Consider
AXIS Capital is not the only firm expecting to outperform this
earnings season. We also see likely earnings beats coming from
these property and casualty insurance industry:
), earnings ESP of +13.59% and a Zacks Rank #2.
Aspen Insurance Holdings Ltd.
), earnings ESP of +3.57% and a Zacks Rank #3.
CNA Financial Corporation
), earnings ESP of +2.90% and a Zacks Rank #3.