Group 1 - The article promotes a weekly newsletter focused on stocks in the biotech, pharma, and healthcare industries, aimed at both novice and experienced investors [1] - The newsletter provides insights on key trends, catalysts driving valuations, product sales forecasts, and integrated financial statements for major pharmaceutical companies [1] - The author, Edmund Ingham, has over 5 years of experience in covering biotech, healthcare, and pharma, and has prepared detailed reports on more than 1,000 companies [1]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Axis Capital (AXS) , which belongs to the Zacks Insurance - Property and Casualty industry, could be a great candidate to consider.This insurance company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 15.45%.For the most recent quarter, Axis C ...

Core Insights - AXIS Capital Holdings Limited (AXS) shares have increased by 48% over the past year, outperforming the Finance sector and the S&P 500 composite, which grew by 18.4% and 9.4% respectively [1] - The company has a market capitalization of $8.13 billion and an average trading volume of 0.7 million shares over the last three months [1] Performance Metrics - AXS has consistently beaten earnings estimates in the last four quarters, with an average beat of 13.89% [3] - The Zacks Consensus Estimate for AXS's 2025 earnings per share indicates a 3.4% year-over-year increase, with revenues expected to reach $6.58 billion, reflecting a 7.8% improvement [12] - Earnings have grown by 67.1% over the past five years, significantly higher than the industry average of 20.8% [13] Valuation and Price Movement - AXS shares are trading at a forward price-to-book value of 1.51X, lower than the industry average of 1.56X and the Finance sector's 4.11X [4] - The stock closed at $103.42, near its 52-week high of $107.19, indicating strong investor confidence [5] - The average price target from analysts is $112.38 per share, suggesting a potential upside of 9.1% from the last closing price [16] Strategic Focus and Growth Areas - AXS is focusing on growth areas such as wholesale insurance, lower middle markets, and specialty reinsurance lines [8] - The company aims to reduce its general and administrative expense ratio to below 11% by 2026 [8] - AXS is enhancing its digital capabilities to drive growth in smaller accounts and improve operational efficiencies [21] Dividend and Return Metrics - AXS has a strong dividend history, having increased its dividend for 18 consecutive years, currently yielding 1.7%, significantly above the industry average of 0.2% [22] - The return on equity for AXS in the trailing 12 months was 19%, outperforming the industry average of 7.8% [18] Analyst Sentiment - Analysts have raised their earnings estimates for AXS for both 2025 and 2026, with the consensus estimates increasing by 2.4% and 0.5% respectively over the past 60 days [14]

Financial Performance Highlights - The company achieved an all-time high quarterly operating EPS of $3.17[47] - The annualized operating return on average common equity (ROACE) reached 19.2%[13, 35, 48] - The diluted book value per share hit a record of $66.48, marking a 16.4% increase over the past 12 months[48] - The company executed $440 million in share repurchases during the first quarter of 2025[19, 44, 47] Underwriting Performance - The current accident year combined ratio, excluding catastrophes and weather, improved to 87.9%, a 1.7 percentage point improvement year-over-year[48] - The insurance segment's gross premiums written (GPW) reached $1.7 billion, a 5% increase year-over-year, representing the highest first-quarter volume for the segment[33, 47] - Reinsurance segment GPW increased by 5% year-over-year to $1.1 billion, driven by new business in Professional Lines and Credit & Surety lines[33] Strategic Focus and Portfolio - The company's total capital stands at $7.2 billion, with a debt-to-total capital ratio of 18.2%[13] - The company's gross premiums written (GPW) is $9.1 billion[13, 22] - The company aims for a G&A ratio of less than 11% by 2026 through the "How We Work" program[38]

Group 1 - The article focuses on the undervalued preferred shares of AXIS Capital Holdings Limited (NYSE: AXS) and analyzes their yield spread, which has widened significantly compared to similar instruments [1] - The investment group Trade With Beta, led by Denislav, provides features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1] - The article expresses a beneficial long position in the shares of AXS.PR.E, indicating a personal investment interest by the author [1]

Industry Overview - The Zacks Property and Casualty (P&C) Insurance industry is experiencing growth due to solid retention, exposure growth across business lines, and improved pricing, which are driving higher premiums and maintaining profitability [1] - The industry is focusing on personalized offerings to enhance customer experience and is leveraging digitalization [1] - Catastrophic activities, both natural and man-made, may have negatively impacted underwriting profit [1] Company Analysis: Axis Capital Holdings Limited (AXS) - AXS has seen an increase in its top line driven by higher net premiums earned and net investment income [4] - The Insurance segment is performing well, contributing to improved premiums, with favorable market conditions expected to continue across property lines [5] - AXS is focused on growth in Marine Cargo, Cyber, and Renewable Energy, with a return on equity (ROE) of 19%, significantly above the industry average of 7.8% [6] - The company’s net investment income has shown a four-year CAGR of 21.4%, supported by increased fixed maturity assets and yields [7] - AXS has a strong track record of shareholder value enhancement through stock buybacks and consecutive dividend increases, with a ten-year CAGR of 4.2% [8] Company Analysis: Arch Capital Group Ltd. (ACGL) - ACGL focuses on writing specialty lines of insurance and reinsurance, maintaining a strong track record of net premiums written with a four-year CAGR of 20.6% [9][10] - The company expects continued growth in its Insurance and Reinsurance segments due to rate increases and new business opportunities [11] - ACGL has seen a four-year CAGR of 30.2% in net investment income, benefiting from rising investment yields and a growing investment portfolio [12] - The company maintains a robust capital position and has improved its balance sheet, with a return on equity of 15.7%, also above the industry average [13] Financial Estimates - The Zacks Consensus Estimate for AXS' 2025 revenues and EPS indicates a year-over-year increase of 7.8% and 3.4%, respectively [14] - For ACGL, the 2025 revenue estimate suggests a year-over-year increase of 13.5%, while EPS is projected to decline by 14.7% [15] Valuation Metrics - AXS is trading at a price-to-book multiple of 1.49, above its five-year median of 1.06, while ACGL's price-to-book multiple is at 1.69, above its median of 1.64 [16] Conclusion - AXS is well-positioned for growth in its Specialty Insurance and Reinsurance business, particularly in Marine Cargo, Cyber, and Renewable Energy [17] - ACGL is set to benefit from specialty lines of insurance and reinsurance, with growth driven by rate increases and a growing investment portfolio [17] - AXS has a solid dividend yield of 1.7%, significantly higher than the industry average of 0.2%, making it attractive for yield-seeking investors [18] - AXS has outperformed the industry with a year-to-date gain of 14.5%, while ACGL has gained only 0.7% [20]

Core Viewpoint - AXIS Capital Holdings Limited (AXS) demonstrates strong investor confidence with its stock trading near a 52-week high, indicating potential for further price appreciation and solid upward momentum [1][6]. Financial Performance - Earnings of AXIS Capital grew by 67.1% over the last five years, significantly outperforming the industry average of 18.9% [2]. - The company has consistently beaten earnings estimates, with an average surprise of 13.89% over the last four quarters [2]. - The market capitalization of AXIS Capital is $7.90 billion, with an average trading volume of 0.7 million shares over the last three months [5]. Stock Performance - AXIS Capital shares have increased by 42.7% in the past year, outperforming the Finance sector and the Zacks S&P 500 composite, which grew by 15.1% and 7.7%, respectively [6]. Growth Projections - The Zacks Consensus Estimate for AXIS Capital's 2025 earnings per share indicates a year-over-year increase of 3.1%, with revenues projected to reach $6.66 billion, reflecting a 9.2% improvement [9]. - For 2026, earnings per share and revenues are expected to increase by 8.8% and 7%, respectively, compared to 2025 estimates [9]. Analyst Sentiment - Analysts have raised their estimates for AXIS Capital's earnings for 2025 by 2.5% and for 2026 by 0.8% over the past 30 days, indicating positive sentiment [10]. Return on Capital - The return on equity for AXIS Capital in the trailing 12 months was 19%, significantly higher than the industry average of 7.7%, showcasing efficient use of shareholders' funds [11]. - The return on invested capital (ROIC) was 11.7%, also exceeding the industry average of 5.9%, reflecting effective capital utilization [12]. Strategic Focus - AXIS Capital aims to be a leading specialty underwriter, focusing on growth areas such as wholesale insurance and lower middle markets, while managing risk exposure [13]. - The company is enhancing its digital capabilities and simplifying its operating structure to achieve a general and administrative ratio of less than 11% by 2026 [15]. Dividend History - AXIS Capital has a strong dividend track record, having increased its dividend for 18 consecutive years, currently yielding 1.75%, well above the industry average of 0.2% [16]. Valuation - AXIS Capital shares are trading at a price-to-book multiple of 1.48, lower than the industry average of 1.52, indicating a favorable entry point for investors [17]. Conclusion - AXIS Capital is well-positioned for growth through prudent resource deployment, improved portfolio mix, and enhanced underwriting profitability, supported by a favorable dividend history and solid growth projections [19][21].

Core Viewpoint - Axis Capital (AXS) has shown strong stock performance, with a 9% increase over the past month and a 14.2% gain since the start of the year, outperforming both the Zacks Finance sector and the Zacks Insurance - Property and Casualty industry [1][2]. Financial Performance - Axis Capital reported an EPS of $3.17 in its last earnings report, exceeding the consensus estimate of $2.64, marking a consistent record of positive earnings surprises over the last four quarters [2]. - For the current fiscal year, Axis Capital is projected to achieve earnings of $11.53 per share on revenues of $6.66 billion, reflecting a 3.13% increase in EPS and a 9.21% increase in revenues. The next fiscal year forecasts earnings of $12.54 per share on $7.13 billion in revenues, indicating year-over-year changes of 8.8% and 7.09%, respectively [3]. Valuation Metrics - Axis Capital has a Value Score of A, with Growth and Momentum Scores of C, resulting in a combined VGM Score of A [6]. - The stock trades at 8.8X current fiscal year EPS estimates, below the peer industry average of 11.7X. On a trailing cash flow basis, it trades at 8.5X compared to the peer group's average of 12.2X. The PEG ratio stands at 1.34, suggesting it is not among the top value stocks [7]. Zacks Rank - Axis Capital holds a Zacks Rank of 2 (Buy), driven by rising earnings estimates. This aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for the stock in the near future [8].

Group 1 - The article discusses the analytical approach of Stephen, who combines clinical insight with valuation methods to analyze healthcare and tech stocks [1] - Stephen specializes in scenario-based DCF modeling, sensitivity analysis, and Monte Carlo simulations to identify asymmetric risk-reward opportunities [1] - The focus is on translating complex scientific and market dynamics into actionable investment theses [1] Group 2 - The article emphasizes the importance of independent verification of information and conducting thorough research before making investment decisions [3] - It highlights that past performance is not indicative of future results and that no specific investment recommendations are provided [4]

Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Axis Capital (AXS) and Chubb (CB) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy t ...