Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Axis Capital (AXS) and Selective Insurance (SIGI) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Styl ...

Core Viewpoint - AXIS Capital Holdings Limited (NYSE: AXS) has shown strong performance since being rated a buyback in May 2023, outperforming the broader market and leading the reinsurance sector in 2024 [1][3]. Financial Performance - The stock price increased from approximately $56 in May 2023 to around $74, indicating significant growth [4]. - For the first half of 2024, AXS reported a net income of $592 million, or $6.93 per diluted share, and an operating income of $470 million, or $5.50 per diluted share [7]. - The annualized return on average common equity (ROACE) was 24.1%, with an operating ROACE of 19.1% [7]. - The combined ratio improved to 90.8%, reflecting better underwriting performance [7]. Business Strategy - AXS is transitioning away from property and catastrophe reinsurance segments, focusing on specialty business growth, which has led to over 5% year-over-year revenue growth [5][4]. - The company aims for consistency in earnings by reducing exposure to volatile non-specialty services [4]. Market Position - AXS's stock trades at under 7 times earnings, suggesting it is not overly expensive given its performance metrics [11]. - The company has successfully rebalanced its portfolio, reducing probable maximum losses and improving underwriting performance [10][11]. Investment Outlook - Despite strong performance, the company is facing challenges such as high variability in earnings and potential peaks in insurance premiums [8][18]. - The current market conditions suggest that while AXS has performed well, it may not be the best entry point for new investments, leading to a rating change to "Hold" [19][20].

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, August 15th:Latham Group, Inc. (SWIM) : This maker of residential swimming pools has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 150% over the last 60 days.Latham’s shares gained 44.1% over the last three months compared with the S&P 500’s advance of 2.9%. The company possesses a Momentum Score  of B.Nomura Research Institute, Ltd. (NRILY) : This co ...

Company Performance - Axis Capital (AXS) has returned 33.3% year-to-date, significantly outperforming the Finance sector's average return of 11.4% [2] - The Zacks Consensus Estimate for AXS' full-year earnings has increased by 5.8% over the past quarter, indicating stronger analyst sentiment and an improving earnings outlook [2] - Axis Capital holds a Zacks Rank of 1 (Strong Buy), suggesting it has the characteristics to outperform the market in the near term [1] Industry Comparison - Axis Capital is part of the Insurance - Property and Casualty industry, which has an average gain of 21.7% this year, indicating AXS is performing better than its industry peers [3] - In contrast, Ellington Credit (EARN), another outperforming Finance stock, is in the REIT and Equity Trust industry, which has seen a decline of 9.2% year-to-date [3] - The Insurance - Property and Casualty industry currently ranks 38 in the Zacks Industry Rank, while the REIT and Equity Trust industry ranks 88 [3]

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:NexPoint Real Estate Finance, Inc. (NREF) : This real estate finance company has seen the Zacks Consensus Estimate for its current year earnings increasing 7.8% over the last 60 days.Latham Group, Inc. (SWIM) : This maker of residential swimming pools has seen the Zacks Consensus Estimate for its current year earnings increasing 150% over the last 60 days.Nomura Research Institute, Ltd. (NRILY) : This company that provides IT solutions ...

Group 1 - NexPoint Real Estate Finance, Inc. (NREF) has a Zacks Rank 1 and a dividend yield of 13.9%, exceeding the industry average of 12% [1] - Monarch Casino & Resort, Inc. (MCRI) also holds a Zacks Rank 1 with a dividend yield of 1.6%, compared to the industry average of 0.0% [1] - AXIS Capital Holdings Limited (AXS) has a Zacks Rank 1 and a dividend yield of 2.4%, which is higher than the industry average of 0.2% [2] Group 2 - NREF's current year earnings estimate has increased by 7.8% over the last 60 days [1] - MCRI's current year earnings estimate has risen by 3.6% over the last 60 days [1] - AXS's current year earnings estimate has grown by 4.1% over the last 60 days [1]

Financial Data and Key Metrics Changes - The annualized operating ROE was 20%, with operating earnings per share of $2.93, a 31.5% increase year-over-year, marking the highest quarterly operating EPS in the company's history [8][20] - The diluted book value per share increased to $59.29, reflecting a nearly 10% year-to-date increase and a nearly 20% increase over the past 12 months [20] - Overall premiums grew by 6.8% to $2.4 billion, driven by solid growth in both insurance and reinsurance [9][20] Business Line Data and Key Metrics Changes - The insurance segment generated a combined ratio of 87.9%, with premium production of $1.8 billion, representing a 17% net written premium growth [9][24] - The reinsurance segment achieved a combined ratio of 89.3%, generating $46 million in underwriting profit [12][29] - In the insurance business, property lines saw significant growth, while U.S. casualty was down about 5% due to reshaping efforts [25][27] Market Data and Key Metrics Changes - In North America, new business was up 18% year-over-year, with submissions in the wholesale channel increasing by 24% [10] - The company observed heightened competition in the property business but continued to see strong submission flow and premium growth [14] - The company reported a shift towards short-tail lines, which formed 52% of gross premiums written, up approximately 4% year-over-year [14] Company Strategy and Development Direction - The company aims to achieve specialty underwriting leadership and is focused on targeted specialty markets for profitable growth [7][17] - Investments are being made in enhancing operational efficiency, digitization, and automation initiatives to improve service quality and productivity [18][23] - The company is committed to maintaining a G&A ratio below 11% for the full year 2026 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the adequacy of pricing across the portfolio, despite competitive pressures [14][36] - The outlook for the second half of the year remains optimistic, with expectations for continued strong performance [31][74] - Management noted that while the share price is attractive for buybacks, the primary focus remains on investing in the business [31][49] Other Important Information - The company experienced $47 million in catastrophe losses during the quarter, with natural catastrophes accounting for $38 million [21] - The G&A expense ratio improved to 11.4%, down from 13.3% a year ago, reflecting successful cost optimization efforts [22][23] - The company returned $76 million to shareholders through dividends and share repurchases during the quarter [31] Q&A Session Summary Question: Can you elaborate on the reserve actions taken in the fourth quarter? - Management conducted a full review of reserves and remains confident in the assumptions used, reinforcing the adequacy of reserves for accident years 2020 to 2023 [33][34] Question: Why were there no additional buybacks since the Investor Day? - The decision not to conduct buybacks was due to ongoing restructuring actions and the presence of material nonpublic information [37][40] Question: What is driving the consistency in the underlying loss ratios? - The consistency is attributed to a mix shift towards short-tail business, offset by higher loss picks in long-tail liabilities [52][54] Question: How does the company view the cyber market dynamics following the CrowdStrike event? - Management sees this as an opportunity for the market to reset, particularly regarding policy language and waiting periods [57] Question: What is the sustainability of the current loss ratios in the insurance and reinsurance segments? - Management expects the insurance loss ratio to remain sustainable within the current year, while the reinsurance loss ratio is projected to align with mid-60s targets [59][62]

AXIS Capital Holdings Limited (AXS) posted second-quarter 2024 operating income of $2.93 per share, beating the Zacks Consensus Estimate by 16.2%. The bottom line increased 31.4% year over year.The quarterly results of AXS reflected improved underwriting income across both segments, income from fixed maturities portfolio, an increase in property, credit and political risk, and accident and health lines, as well as lower expenses.Quarterly Operational Update  Total operating revenues of $1.5 billion beat the ...

Axis Capital (AXS) reported $1.5 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 6.8%. EPS of $2.93 for the same period compares to $2.23 a year ago.The reported revenue represents a surprise of +2.86% over the Zacks Consensus Estimate of $1.46 billion. With the consensus EPS estimate being $2.52, the EPS surprise was +16.27%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...