Company Overview - Allianz SE (ALIZY) is headquartered in Munich and operates in the Finance sector [3] - The stock has experienced a price change of 30.68% since the beginning of the year [3] Dividend Information - Allianz SE currently pays a dividend of $1.18 per share, resulting in a dividend yield of 2.95% [3] - This yield is higher than the Insurance - Multi line industry's yield of 1.82% and the S&P 500's yield of 1.54% [3] - The annualized dividend of $1.18 represents a 15.1% increase from the previous year [4] - Over the last 5 years, Allianz has increased its dividend 3 times year-over-year, averaging an annual increase of 7.95% [4] - The current payout ratio is 37%, indicating that Allianz paid out 37% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, Allianz SE anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $3.20 per share, reflecting a year-over-year growth rate of 16.36% [5] Investment Appeal - Allianz SE is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]

Market Overview - Wall Street experienced significant gains in May, with the S&P 500 increasing by 6.2% and the Nasdaq rising by 9.6%, marking the best month for both indices since late 2023 [1] - Investor optimism was fueled by a temporary pause on new trade tariffs announced by Trump, alleviating fears regarding trade tensions with China and the EU [1] Geopolitical Risks - Despite the temporary relief, the threat of tariffs remains, as China accused the U.S. of violating their trade truce by tightening controls on AI chip exports and student visas, which has raised tensions again [2] - The interconnectedness of the U.S. and Chinese economies means that even minor disputes can significantly impact market stability [2] Investment Strategy - In uncertain times, investors are turning to value investing, focusing on companies with strong fundamentals that are undervalued [3] - Value stocks with high earnings yield can provide attractive returns, especially during periods of market volatility [4] Earnings Yield - Earnings yield is calculated by dividing a company's annual earnings per share (EPS) by its current stock price, indicating potential returns for investors [5] - A higher earnings yield suggests a stock may be undervalued compared to its peers, while a lower yield may indicate overvaluation [5][7] Stock Screening Criteria - A primary screening criterion for selecting stocks is an earnings yield greater than 10%, supplemented by estimated EPS growth, average daily volume, and current price thresholds [8][9][10] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform their peers [10] Selected Value Stocks - Five value stocks with earnings yields exceeding 10% have been identified as appealing options amid rising U.S.-China tensions: AngloGold Ashanti (AU), Orchid Island Capital (ORC), LATAM Airlines (LTM), Priority Technology (PRTH), and Allianz (ALIZY) [11] - All five stocks show strong projected EPS growth through 2026 and meet liquidity, price, and growth criteria [11] Company Highlights - **AngloGold Ashanti (AU)**: Expected earnings growth of 95% in 2025 and 6.7% in 2026, with a Zacks Rank of 1 and a Value Score of A [12] - **Orchid Island Capital (ORC)**: Projected earnings growth of 394% in 2025 and 24.5% in 2026, Zacks Rank 1, Value Score B [13] - **LATAM Airlines (LTM)**: Anticipated earnings growth of 27.5% in 2025 and 20% in 2026, Zacks Rank 1, Value Score A [14] - **Priority Technology (PRTH)**: Expected earnings growth of 108% in 2025 and 34% in 2026, Zacks Rank 1, Value Score A [15] - **Allianz (ALIZY)**: Projected earnings growth of 16.4% in 2025 and 9% in 2026, Zacks Rank 1, Value Score B [16]

Core Viewpoint - Allianz's Chief Investment Officer Ludovic Subran warns that a specific tax provision in Trump's fiscal plan could lead to a 10% drop in the stock market and a 5% depreciation of the dollar if enacted [1] Group 1: Tax Provision Impact - The tax provision, known as Section 899, was passed in the House of Representatives in May and targets countries with "discriminatory" tax policies [1] - Subran describes the potential implementation of this provision as a "huge and terrifying moment" for the market [1] - The Joint Committee on Taxation (JCT) has expressed concerns, estimating that the provision could generate $116.3 billion in revenue over the next decade but ultimately reduce annual tax revenue by $12.9 billion in 2033 and 2034 [1] Group 2: Market Reactions - Subran predicts that the stock market could experience a sell-off of 10% and the dollar could depreciate by 5% if the tax provision is enacted [1] - He also anticipates a 0.5 percentage point increase in U.S. Treasury yields as a consequence of the provision [1] - Foreign investors hold a significant portion of U.S. long-term securities, including stocks and bonds, which could be affected by these changes [1]

Core Insights - The report from Allianz Research indicates that the term premium, which is the additional yield investors seek for holding long-term bonds over short-term bonds, is rising globally due to structural uncertainties [1] Group 1: Term Premium Dynamics - The term premium is increasing as a result of synchronized pricing of structural uncertainties such as rising inflation risks, geopolitical tensions, and escalating fiscal risks [1] - The global bond market has significantly steepened, driven by the long end of the yield curve [1] Group 2: Yield Movements - Year-to-date, the yield on 30-year government bonds has surged by 30-80 basis points, while the spread between 10-30 year bonds has widened by 20-30 basis points [1] - The dominance of U.S. Treasuries in the ultra-long bond segment has amplified this trend [1]

Core Viewpoint - Allianz SE (ALIZY) and Münchener Rückversicherungs-Gesellschaft (MURGY) are both strong candidates for value investors, with both stocks currently holding a Zacks Rank of 1 (Strong Buy) indicating positive earnings outlooks [3][7]. Valuation Metrics - ALIZY has a forward P/E ratio of 12.28, while MURGY has a forward P/E of 12.30, indicating similar valuation levels [5]. - The PEG ratio for ALIZY is 1.19, which is lower than MURGY's PEG ratio of 1.46, suggesting that ALIZY may offer better value relative to its expected earnings growth [5]. - ALIZY's P/B ratio is 2.43 compared to MURGY's P/B of 2.72, further supporting the argument that ALIZY is the more attractive option based on valuation metrics [6]. Value Grades - Based on the analysis of various valuation metrics, ALIZY has earned a Value grade of B, while MURGY has received a Value grade of C, indicating that ALIZY is currently viewed as the superior value investment [6][7].

Company Overview - Allianz SE is headquartered in Munich and has experienced a price change of 28.32% this year [3] - The company currently pays a dividend of $1.18 per share, resulting in a dividend yield of 3%, which is higher than the Insurance - Multi line industry's yield of 1.78% and the S&P 500's yield of 1.52% [3] Dividend Performance - Allianz SE's annualized dividend of $1.18 has increased by 15.1% from the previous year [4] - Over the past five years, Allianz has raised its dividend three times, achieving an average annual increase of 7.95% [4] - The current payout ratio is 37%, indicating that Allianz paid out 37% of its trailing 12-month earnings per share as dividends [4] Future Outlook - For the fiscal year, Allianz SE anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $3.19 per share, reflecting a year-over-year growth rate of 16% [5] - The company's strong dividend profile and growth potential make it an attractive investment opportunity, supported by a strong Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - Allianz SE (ALIZY) has experienced a 7.3% decline in share price over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, with reduced selling pressure, which could lead to a bullish trend [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that buyers are starting to emerge after a downtrend [4][5]. - The occurrence of this pattern at the bottom of a downtrend suggests that bears may be losing control, indicating a possible trend reversal [5][6]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for Allianz SE, which is a bullish indicator for the stock [7]. - The consensus EPS estimate for the current year has increased by 2% over the last 30 days, reflecting analysts' agreement on the company's improved earnings potential [8]. - Allianz SE holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Allianz SE (ALIZY) - Allianz SE currently holds a Momentum Style Score of B, indicating potential for solid momentum investing [3]. - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4]. Performance Metrics - Over the past week, ALIZY shares increased by 2.52%, while the Zacks Insurance - Multi line industry rose by 2.89% [6]. - In a longer timeframe, ALIZY's shares have appreciated by 22.76% over the past month, compared to the industry's 12.15% [6]. - Over the last quarter, ALIZY shares have gained 28.72%, and over the past year, they have increased by 46.26%. In contrast, the S&P 500 has moved -6.46% and 11.69% respectively during the same periods [7]. Trading Volume - The average 20-day trading volume for ALIZY is 302,275 shares, which serves as a baseline for price-to-volume analysis [8]. Earnings Outlook - Recent earnings estimate revisions for ALIZY show 2 estimates moving higher for the full year, raising the consensus estimate from $3.01 to $3.21 over the past 60 days [10]. - For the next fiscal year, 2 estimates have also increased, with no downward revisions noted [10]. Conclusion - Considering the positive performance metrics and earnings outlook, ALIZY is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12].

Core Viewpoint - The insurance sector has demonstrated resilience amid a turbulent market environment characterized by shifting global trade policies, lack of clarity from the US administration, and rising tensions between the president and the Federal Reserve [1][8]. Group 1: Market Environment - The current market is marked by significant uncertainty, with stocks experiencing volatility due to changing global trade policies and macroeconomic factors [1]. - Investor confidence is shaken by severe policy uncertainty and tensions with the Federal Reserve, leading to a challenging environment for most sectors [8]. Group 2: Insurance Sector Performance - The insurance sector has stood out for its strong performance, with companies like Allianz, Sompo Holdings, Munich Re, and Swiss Re reaching record highs recently [2][8]. - Factors fueling the rally in insurance stocks include strong earnings momentum, high interest rates, and defensive positioning in a volatile macro backdrop [2][4]. Group 3: Business Model and Financials - The insurance business model benefits from investment income earned from customer premiums, known as "float," which becomes more valuable in a high-rate environment [4]. - Insurers are experiencing strong tailwinds from their bond portfolios due to elevated yields, which are not expected to decline sharply in the near term [4]. - The insurance industry is characterized by stable, highly regulated business models that are less sensitive to economic cycles, making them well-suited for the current uncertain environment [5]. Group 4: Investment Appeal - Companies like Allianz, Sompo Holdings, Munich Re, and Swiss Re provide diversified global operations across various insurance segments, offering steady cash flow and systemic importance in their markets [6]. - These firms are noted for their strong earnings growth forecasts, price momentum, and modest valuations, with none trading above 13x forward earnings [10]. - The insurance stocks are also attractive for their reliable dividends, making them appealing total return plays in a leading sector [10][11]. Group 5: Analyst Confidence - A significant number of insurance stocks currently hold a Zacks Rank 1 (Strong Buy), indicating upward revisions to earnings estimates and growing analyst confidence [9].

Core Insights - Three stocks with strong momentum and buy rank are highlighted for investors: Michelin, Allianz SE, and Engie SA [1][2][3] Group 1: Michelin - Michelin (MGDDY) has a Zacks Rank 1 and a 15.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Michelin's shares increased by 0.8% in the last three months, while the S&P 500 declined by 9.9% [1] - The company has a Momentum Score of A [1] Group 2: Allianz SE - Allianz SE (ALIZY) also holds a Zacks Rank 1 with a 5.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Allianz's shares rose by 21.5% over the last three months, contrasting with the S&P 500's decline of 9.9% [2] - The company has a Momentum Score of B [2] Group 3: Engie SA - Engie SA (ENGIY) has a Zacks Rank 1 and a 9.2% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2][3] - Engie's shares gained 26.8% over the last three months, while the S&P 500 declined by 9.9% [3] - The company possesses a Momentum Score of A [3]