Zacks Investment Research upgraded
Navigators Group Inc.
) to a Zacks Rank #1 (Strong Buy) on May 13, 2014.
Why the Upgrade?
Navigators Group has been witnessing a rise in earnings estimates
on the back of strong first-quarter 2014 results and a significant
growth momentum. The long-term expected earnings growth rate for
this stock is 13.50%. Additionally, this property and casualty
insurer had posted positive earning surprises in the trailing four
quarters with an average beat of 49.06%.
Navigators Group reported its first-quarter results on May 7 with
operating earnings of $1.45 per share, outpacing the Zacks
Consensus Estimate of 97 cents by 49.48%. The results also exceeded
the prior-year quarter figure of 75 cents per share.
Results benefited from strong top-line growth, an increase in net
investment income and higher premiums.
Net income grew substantially year over year, while gross written
premiums and net written premiums rose 7.5% and 15.7%,
respectively. The combined ratio improved to 92.2% from 97.9% in
the year-ago quarter. On the flip side, a 5.5% rise in total
expenses was recorded.
Based on Navigators Group's fundamental strength, the Zacks
Consensus Estimate for 2014 moved north by 7.0% to $4.16 per share
over the last 30 days. Meanwhile, the estimate for 2015 rose 5.8%
to $4.55 per share during the same period.
Other Stocks to Consider
Investors eyeing the property and casualty insurance industry
may also consider other top-ranked players such as
AmTrust Financial Services, Inc.
Allied World Assurance Company Holdings, AG
Aspen Insurance Holdings Ltd.
). All these stocks sport the same Zacks Rank as Navigators
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AMTRUST FIN SVC (AFSI): Free Stock Analysis
ASPEN INS HLDGS (AHL): Free Stock Analysis
ALLIED WORLD AS (AWH): Free Stock Analysis
NAVIGATORS GRP (NAVG): Free Stock Analysis
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