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Why Hamilton Insurance (HG) Outpaced the Stock Market Today

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Hamilton Insurance (HG - Free Report) ended the recent trading session at $24.64, demonstrating a +1.19% change from the preceding day's closing price. This change outpaced the S&P 500's 0.59% gain on the day. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.44%.

The provider of insurance and reinsurance services's stock has climbed by 1.63% in the past month, falling short of the Finance sector's gain of 1.64% and the S&P 500's gain of 2.72%.

The investment community will be paying close attention to the earnings performance of Hamilton Insurance in its upcoming release. On that day, Hamilton Insurance is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 31.08%. At the same time, our most recent consensus estimate is projecting a revenue of $612.29 million, reflecting a 19.39% rise from the equivalent quarter last year.

HG's full-year Zacks Consensus Estimates are calling for earnings of $0 per share and revenue of $2.76 billion. These results would represent year-over-year changes of 0% and +18.28%, respectively.

Investors should also note any recent changes to analyst estimates for Hamilton Insurance. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Hamilton Insurance is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Hamilton Insurance is currently being traded at a Forward P/E ratio of 7.71. This indicates a discount in contrast to its industry's Forward P/E of 9.86.

The Insurance - Multi line industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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