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Why Kinsale Capital Group, Inc. (KNSL) Outpaced the Stock Market Today

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Kinsale Capital Group, Inc. (KNSL - Free Report) closed the most recent trading day at $486.93, moving +1.94% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.9%. On the other hand, the Dow registered a gain of 0.81%, and the technology-centric Nasdaq increased by 1.22%.

The the stock of company has risen by 2.71% in the past month, leading the Finance sector's gain of 0.34% and undershooting the S&P 500's gain of 3.15%.

The investment community will be paying close attention to the earnings performance of Kinsale Capital Group, Inc. in its upcoming release. It is anticipated that the company will report an EPS of $3.74, marking a 12.99% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $401.67 million, up 27.77% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $15.31 per share and a revenue of $1.58 billion, demonstrating changes of +22.48% and +29.74%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kinsale Capital Group, Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kinsale Capital Group, Inc. presently features a Zacks Rank of #2 (Buy).

Looking at valuation, Kinsale Capital Group, Inc. is presently trading at a Forward P/E ratio of 31.21. Its industry sports an average Forward P/E of 13.57, so one might conclude that Kinsale Capital Group, Inc. is trading at a premium comparatively.

One should further note that KNSL currently holds a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KNSL's industry had an average PEG ratio of 1.7 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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