Core Insights - Kingstone Companies (KINS) shares are trading at a premium compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 3.36X versus the industry average of 1.63X [1] - KINS is the 15th largest homeowner insurer in New York with a market share of 1.6% and is positioned to benefit from a $200 million market opportunity as competitors exit the personal property market in July 2024 [2] - KINS shares have increased by 5.4% year to date, outperforming its industry, sector, and the Zacks S&P 500 composite [4] Financial Performance - The Zacks Consensus Estimate for KINS is $1.55 for 2025, indicating a 10.7% year-over-year increase with revenues projected to rise by 22.8% to $192.6 million [10] - KINS expects earnings per share for 2025 to be between $1.60 and $2.00 [10] - Return on equity (ROE) for KINS in the trailing 12 months was 32.6%, significantly higher than the industry average of 7.6% [14] - KINS anticipates ROE to be between 32% and 36% in 2024 and between 24% and 32% in 2025 [14] - Return on invested capital (ROIC) for KINS was 27% in the trailing 12 months, also above the industry average of 5.8% [15] Growth Strategy - KINS is focusing on its core business while scaling back unprofitable non-core operations, only writing businesses that meet its underwriting standards [11] - The company has successfully implemented price increases ahead of inflation, enhancing its pricing capabilities through a partnership with Earnix [12] - KINS expects direct written premium in its core business to grow between 15% and 25% in 2025 [12] - The company has been reducing its net underwriting expense ratio by increasing average premiums and lowering commissions and staffing [12] Market Position - KINS shares are trading well above the 50-day moving average, indicating a bullish trend and are near the high end of its 52-week range [7] - The average target price for KINS is $17, reflecting a 4.6% upside potential from the recent closing price [17]

Company Overview - Kingstone Companies (NASDAQ: KINS) is a relatively unknown insurance provider focusing on property and casualty insurance [1] - The company is based in New York and operates through over 700 licensed agents and brokers [1] - Kingstone targets both personal lines and commercial auto insurance markets [1]

Core Viewpoint - Kingstone Companies, Inc (KINS) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, which reflects the changing earnings picture of a company [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Company Performance Indicators - Kingstone Companies is projected to earn $1.40 per share for the fiscal year ending December 2024, representing a significant year-over-year increase of 291.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Kingstone Companies has increased by 25%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Kingstone Companies' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Kingstone Companies (NASDAQ: KINS) stock is attractively valued even under conservative assumptions in DCF modeling [1] - The fair value of Kingstone Companies is significantly higher than its market capitalization, indicating substantial upside potential [1]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in stock prices for short-term investing, highlighting that while price movements can be profitable, they can also reverse quickly, leading to potential losses [1][2]. Group 1: Stock Performance - Kingstone Companies, Inc. (KINS) has shown a solid price increase of 42.9% over the past 12 weeks, indicating strong investor interest [4]. - KINS has also experienced a price increase of 6.9% over the last four weeks, suggesting that the upward trend is still intact [5]. - The stock is currently trading at 87.8% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - KINS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks generating an average annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors looking to identify stocks with upward momentum backed by strong fundamentals [3]. - In addition to KINS, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The article suggests that successful stock-picking strategies should be backed by historical performance data, which can be analyzed using the Zacks Research Wizard [9].

Group 1 - The article emphasizes the importance of sharing research to enhance the investment process and receive diverse feedback [1] - The analyst expresses a commitment to transparency by disclosing no current stock positions or plans to initiate any within the next 72 hours [2] - The article highlights that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [3]

Core Insights - Kingstone Companies (KINS) is currently trading above its 50-day simple moving average, indicating a short-term bullish trend, with a share price of $15.03 as of January 2, 2025, down 16.9% from its 52-week high of $18.08 [1][8] - KINS was the 15th largest homeowner insurer in New York in 2023, holding a market share of 1.6%, and is positioned to benefit from a $200 million market opportunity as competitors exit the personal property market in July 2024 [2] - KINS has outperformed the industry, sector, and S&P 500 over the past year, with a share price increase of 612.3% compared to the industry's 23.2% and the S&P 500's 26.1% [4][5] Financial Performance - The Zacks Consensus Estimate for KINS's 2025 earnings has increased by 25% in the past 60 days, suggesting a 10.7% year-over-year increase with revenues projected to rise by 22.8% to $192.1 million [9][10] - KINS expects earnings per share for 2025 to be between $1.60 and $2.00 [11] - The company has a Growth Score of A, indicating strong growth potential [10] Growth Strategy - KINS is focusing on its core business while scaling back on unprofitable non-core operations, which positions it well for future growth [12] - The company has successfully implemented price increases ahead of inflation and enhanced its pricing capabilities through a partnership with Earnix, expecting direct written premium growth of 15% to 25% in 2025 [13] - KINS aims to lower its net expense ratio to below 31% in 2024 by driving higher average premiums and reducing commissions and staffing [14] Profitability Metrics - KINS's return on equity (ROE) for the trailing 12 months was 32.6%, significantly higher than the industry average of 7.6% [15] - The company expects ROE to be between 32% and 36% in 2024 and between 24% and 32% in 2025 [16] - KINS's return on invested capital (ROIC) was 27%, also above the industry average, reflecting efficient fund utilization [17] Valuation - KINS's stock is currently considered overvalued, trading at a price-to-book multiple of 2.79 compared to the industry average of 1.53 [19] - Despite its expensive valuation, KINS is viewed positively due to strong analyst sentiment and growth prospects, with a target price of $17 indicating an 11.9% upside potential [22][24]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that timing entries into these trends is crucial for success [1]. Group 1: Stock Performance and Trends - Kingstone Companies, Inc. (KINS) has shown a significant price increase of 87.3% over the past 12 weeks, indicating strong investor interest and potential upside [8]. - The stock has also experienced a price increase of 19.2% over the past four weeks, suggesting that the upward trend is still intact [4]. - KINS is currently trading at 91.9% of its 52-week high-low range, indicating it may be on the verge of a breakout [12]. Group 2: Ratings and Recommendations - KINS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [9]. - The average broker recommendation for KINS is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [13]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like KINS that have the fundamental strength to maintain their recent uptrend [2]. - The Zacks Rank stock-rating system has a strong historical performance, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [5].

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting that sound fundamentals and positive earnings revisions are crucial for maintaining momentum in stock prices [1][2]. Group 1: Stock Performance - Kingstone Companies, Inc. (KINS) has shown a significant price increase of 81.5% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 49.5% in the last four weeks, suggesting that the upward trend is still intact [5]. - KINS is currently trading at 93.8% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - KINS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like KINS that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through this screen, providing additional investment opportunities for trend-focused investors [8].

Late last winter, Kingstone Companies, Inc. (NASDAQ: NASDAQ: KINS ) wasn’t in great shape. This is a property and casualty insurance company based in Kingston, New York that's been around since 1886 and mainly sells personal andThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companies, offering the Seeking Alpha ...