Atlanta, Georgia-based Assurant, Inc. (AIZ) is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy. With a market cap of $11.6 billion, Assurant’s operations span the Americas, Indo-Pacific, and Europe.
Assurant has outperformed the broader market over the past year. AIZ stock has surged over 34.7% on a YTD basis and over 34.8% in the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 25.8% gains in 2024 and 31.8% returns over the past year.
However, when compared to an industry-focused ETF, AIZ has lagged behind SPDR S&P Insurance ETF’s (KIE) 37.2% gains on a YTD basis and 36.9% returns over the past year.
Assurant’s stock prices soared 6.9% in the trading session after its better-than-expected Q3 earnings release on Nov. 5. The company reported a 7% year-over-year growth in total revenues, reaching approximately $3 billion, exceeding Wall Street’s topline expectation. Moreover, its adjusted EPS of $3 also surpassed analysts’ bottom-line estimate by a staggering 20%, bolstering investors’ confidence.
AIZ’s profitability has taken a sharp hit despite beating analysts’ estimates. The company observed a massive 20.5% increase in policyholder benefits compared to the year-ago quarter to $776.8 million and a 7.4% rise in underwriting, selling, general, and admin expenses to over $2 billion. The surge in these expenses led to a massive 29.6% decline in net income to $133.8 million.
For the current fiscal year, ending in December, analysts expect AIZ to report a marginal drop in adjusted EPS to $15.41. Nevertheless, the company has an impressive earnings surprise history. It has surpassed analysts’ earnings estimates in the past four quarters.
AIZ stock has a consensus “Moderate Buy” rating overall. Out of the six analysts covering the stock, three recommend “Strong Buy,” and three advise a “Hold” rating.
This configuration is slightly less bullish than a month ago when four analysts recommended “Strong Buy” ratings.
On Nov. 12, Keefe, Bruyette & Woods analyst Tommy McJoynt maintained a “Market Perform” rating on AIZ while raising the price target to $212.
Meanwhile, AIZ’s mean price target of $229.60 represents a 1.1% premium compared to the current price levels. The Street-high price target of $240 suggests a just 5.7% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Should You Follow Insider Buying on This Cannabis Stock?
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