) is set to report third-quarter 2013 results on Oct 16. Last
quarter, it posted a 7.6% positive surprise. Let's see how things
are shaping prior to this announcement.
Growth Factors T
his Past Quarter
RLI Corp. is one of the industry's most profitable property and
casualty writers, generating underwriting profits in 33 of the
last 37 years, especially in the last 17 consecutive years.
The absence of any significant catastrophe during the quarter is
likely to aid the company's underwriting results.
However, continued low interest rate environment is expected to
weigh on the company's net investment income. RLI Corp. also
experiences a fluctuating cash position. This keeps us cautious
about its ability to meet debt and liquidity needs as well as
working capital requirements.
Our proven model does not conclusively show that RLI Corp. is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case with RLI Corp. as you will see below.
Zacks ESP 0.0%:
That is because both the Most Accurate estimate and the Zacks
Consensus Estimate stand at 95 cents. The difference is 0.0%.
: RLI Corp.'s Zacks Rank #2 (Buy) increases the predictive power
of ESP. This when combined with a 0.0% ESP makes surprise
prediction difficult. We caution against stocks with Zacks Ranks
#4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows these have the right combination of elements to post
an earnings beat this quarter.
Aspen Insurance Holdings Ltd
), earnings ESP of +159.6% and a Zacks Rank #1 (Strong Buy).
Arch Capital Group Ltd
), earnings ESP of +24.3% and a Zacks Rank #1 (Strong Buy).
Allied World Assurance Company Holdings, AG
), earnings ESP of +12.1% and a Zacks Rank #1 (Strong Buy).
ASPEN INS HLDGS (AHL): Free Stock Analysis
ALLIED WORLD AS (AWH): Free Stock Analysis
RLI CORP (RLI): Free Stock Analysis Report
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