Three major U.S. indexes the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average closed deeply in red by 9.89%, 9.58% and 8.78% respectively, last week. The stocks have taken a beating after the implementation of President Donald Trump’s reciprocal tariff policies with major trading partners on April 2, 2025. Uncertainty over the impact of such policies on the U.S. economy has stoked fear of a near-term recession among market participants.Analysts are expecting a slowdown in economic growth a ...

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Palomar currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Set to Beat the Market? Momentum investing revolves around the idea ...

LA JOLLA, Calif., March 20, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or the “Company”) today announced that it has entered into a definitive agreement to acquire Advanced AgProtection (“AAP”). Advanced AgProtection is a Texas-headquartered specialized Crop Managing General Agent. The AAP team is comprised of industry veterans with longstanding relationships and a proven track record in the Crop insurance sector. Palomar made a strategic investment in AAP in 2023 at the launch ...

It has been about a month since the last earnings report for Palomar (PLMR) . Shares have added about 1.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Palomar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out ...

Palomar Holdings (PLMR) shares are trading at a premium to the Zacks Property and Casualty insurance industry. Its price-to-earnings of 4.58X is higher than the industry average of 1.5X.With a capitalization of $3.4 billion, the average number of shares traded in the last three months was 0.2 million.   Image Source: Zacks Investment ResearchShares of other insurers like Horace Mann Educators (HMN) , Lemonade (LMND) and Employers Holdings Inc. (EIG) are trading at a multiple lower than the industry average. ...

Core Points - Palomar Holdings, Inc. will host an Investor Day on March 20, 2025, in New York City, featuring a presentation by Chairman and CEO Mac Armstrong and the senior leadership team [1][2] - The event will provide a comprehensive overview of Palomar's business, focusing on specialty products, operations, and the Palomar 2X philosophy [2] - The presentation will be available via webcast, with a replay accessible later on the company's Investor Relations website [3] Company Overview - Palomar Holdings, Inc. is a holding company for several subsidiaries, including Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd., among others [4] - The company operates in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [4] - Palomar's insurance subsidiaries have a financial strength rating of "A" (Excellent) from A.M. Best [4]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves significant risk and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Palomar (PLMR) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor interest, with double-digit growth being particularly favorable [3] - Palomar's historical EPS growth rate is 46.3%, with projected EPS growth of 28.5% this year, significantly surpassing the industry average of 3.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, enabling them to fund new projects without external financing [5] - Palomar's year-over-year cash flow growth is 45.1%, well above the industry average of 15.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 34.3%, compared to the industry average of 12.3% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - The Zacks Consensus Estimate for Palomar's current-year earnings has increased by 10.4% over the past month [8] Group 5: Overall Assessment - Palomar has achieved a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a potential outperformer for growth investors [10]

Reinsurance and Catastrophe Coverage - The company's reinsurance coverage currently exhausts at $3.08 billion for earthquake events, $735 million for Hawaii hurricane events, and $117.5 million for continental U.S. hurricane events[136]. - The company's catastrophe event retention is currently $20 million for earthquake events and $15.5 million for hurricane events and all other perils[136]. - As of December 31, 2024, the company had $395.2 million of aggregate reinsurance recoverables[138]. - The company closed a $400 million catastrophe bond effective June 1, 2021, and a $275 million catastrophe bond effective June 1, 2022, among others, to enhance its reinsurance coverage[149]. - The company may seek similar catastrophe bond offerings in the future, but there is no assurance that it will be able to complete such offerings on acceptable terms[150]. - The company is exposed to significant risks from unpredictable catastrophe events, which could materially adversely affect its business and financial condition[134]. - The company may be unable to purchase third-party reinsurance or expand its catastrophe coverage on commercially acceptable terms, which could adversely affect its business[146]. - The reinsurance market is cyclical, and hard market cycles may increase the cost of reinsurance or limit the amount of reinsurance the company can purchase[148]. Financial Performance and Growth - Total assets increased to $2,262,220,000 in 2024 from $1,708,022,000 in 2023, representing a growth of 32.4%[504]. - Gross written premiums rose to $1,541,962,000 in 2024, up 35.1% from $1,141,558,000 in 2023[506]. - Net income for 2024 reached $117,573,000, a 48.3% increase compared to $79,201,000 in 2023[506]. - Net earned premiums increased to $510,687,000 in 2024, up 47.5% from $345,913,000 in 2023[506]. - Total revenues grew to $553,863,000 in 2024, a 47.3% increase from $375,926,000 in 2023[506]. - Cash and cash equivalents increased to $80,438,000 in 2024 from $51,546,000 in 2023, reflecting a growth of 55.9%[504]. - Total liabilities rose to $1,533,190,000 in 2024, up from $1,236,770,000 in 2023, an increase of 24.0%[504]. - Stockholders' equity increased to $729,030,000 in 2024, a significant rise from $471,252,000 in 2023, representing a growth of 54.6%[504]. - Basic earnings per share improved to $4.61 in 2024, compared to $3.19 in 2023, marking a 44.5% increase[506]. - The company issued 1,380,000 shares in a stock offering, raising $115,724,000 net of offering costs[509]. Risk Management and Operational Challenges - The company’s loss reserves are established based on estimates, which may be inadequate to cover actual incurred losses, potentially impacting its financial condition[139]. - The company relies on a select group of brokers and program administrators, and such relationships may not continue, posing a risk to its operations[130]. - The company faces intense competition from larger specialty and standard insurance companies, which may impact its market position and pricing strategies[177][180]. - The company's risk management approach relies on subjective variables and third-party data, which introduces significant uncertainties in estimating probable maximum losses[155][159]. - The company is exposed to potential losses from pandemics and public health crises, which could adversely affect operational and financial performance[164][165]. - Changes in estimates or assumptions used in risk models could lead to actual losses being materially higher than expected, impacting financial results[155][159]. - The company’s business practices and financial strength rating could be adversely affected by unfavorable market trends or regulatory changes[162][163]. - The concentration of business in California increases exposure to regulatory and economic risks, which could lead to significant premium reductions or increased loss exposure[166]. - The company relies on accurate renewals of existing policies for future written premiums, which could be adversely affected if actual renewals do not meet expectations[181]. - The company must evaluate and pay claims accurately and timely; failure to do so could lead to regulatory actions and adversely affect financial condition[182]. Regulatory and Compliance Issues - The company is subject to extensive regulations in multiple states, which could impose penalties and affect financial condition if compliance is not maintained[228]. - Risk-based capital requirements are in place for the company's U.S. insurance subsidiaries, and failure to meet these could lead to regulatory actions[232]. - The company may face additional government regulations related to cybersecurity, which could adversely impact operations[237]. - Legislative changes regarding premium refunds or extended grace periods could significantly increase expenses and decrease short-term revenues, impacting liquidity[238]. - The company is required to comply with the NAIC's Insurance Data Security Model Law, which mandates the establishment of a cybersecurity program and related policies[239]. - The company is subject to various legal and regulatory challenges, which could lead to significant expenses and impact business operations[249]. - The company’s financial results may be materially affected by changes in accounting practices and the implementation of new regulations[254]. - The company is subject to insurance laws in Oregon, California, and Arizona, which require state insurance commissioner approval for any acquisition of 10% or more of its voting stock, potentially delaying or deterring changes in control[264]. Investment and Market Risks - The company’s investment portfolio, valued at $40.5 million as of December 31, 2024, is subject to various market risks that could adversely affect financial results[209]. - The company is exposed to market risks, including equity price risk and interest rate risk, but does not have significant exposure to foreign currency exchange rate risk or commodity risk[472]. - As of December 31, 2024, the estimated fair value of the fixed maturities portfolio was $939.0 million, with a potential 3.7% decline in value for a 100-basis point increase in interest rates[477]. - Approximately 73.5% of the fixed maturity portfolio is rated "A−" or better, with only 1.3% rated below investment grade[474]. - The estimated fair value of equity securities was $40.5 million, primarily consisting of exchange-traded funds tracking the U.S. stock market[478]. - The company manages interest rate risk through disciplined asset/liability matching and capital management processes[476]. - The company anticipates that substantial future increases in inflation could lead to higher interest rates, negatively affecting the market value of the investment portfolio[480]. Operational and Technological Risks - The company relies heavily on information technology and telecommunications systems for underwriting, claims processing, and financial reporting, with potential risks from system failures due to various external events[216]. - Remote work increases the operational risk associated with the company's information technology systems, necessitating reliable performance[217]. - Cybersecurity threats are evolving, and the company faces risks from potential breaches that could lead to operational disruptions and reputational damage[220]. - The company incurs significant costs as a public entity, including compliance with the Sarbanes-Oxley Act, which diverts management's attention from revenue-generating activities[256]. - The company must maintain effective internal controls over financial reporting as required by Section 404 of the Sarbanes-Oxley Act, with potential consequences for non-compliance[261]. - The company may face increased operational costs due to evolving disclosure requirements related to climate change and other regulations[257]. Capital and Financing - The company may require additional capital in the future, which could be unavailable or only available on unfavorable terms, impacting operations[187]. - The company reported a net cash provided by financing activities of $73,774, a turnaround from a net cash used of $3,940 in the previous year[511]. - Future capital-raising transactions could negatively impact the company's stock price, as substantial sales of common stock may lower market value[266]. - The ability to pay dividends is restricted by state insurance laws, and the company does not intend to declare cash dividends in the foreseeable future[246]. - The company faces potential impacts from changes in tax laws, which could increase tax expenses and affect profitability[242].

Core Viewpoint - Palomar (PLMR) is positioned as a strong investment opportunity due to significant revisions in the company's earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts are increasingly optimistic about Palomar's earnings prospects, leading to higher earnings estimates that are expected to positively influence the stock price [2]. - For the current quarter, Palomar is projected to earn $1.54 per share, reflecting a year-over-year increase of +41.28%. Over the past 30 days, three estimates have been raised while one has been lowered, resulting in a 5.11% increase in the Zacks Consensus Estimate [4]. - For the full year, the earnings estimate is $6.54 per share, representing a +28.49% change from the previous year. In the last month, five estimates have been revised upward with no negative revisions, leading to a 10.37% increase in the consensus estimate [5]. Zacks Rank and Performance - Palomar currently holds a Zacks Rank 1 (Strong Buy), which is based on the positive estimate revisions. This ranking is associated with a strong historical performance, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3][6]. - The stock has appreciated by 13.9% over the past four weeks, indicating investor confidence in the company's earnings growth potential [7].

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] Company Overview: Palomar (PLMR) - Palomar currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - Over the past week, PLMR shares have increased by 15.47%, significantly outperforming the Zacks Insurance - Property and Casualty industry, which rose by only 0.01% [5] - In a longer timeframe, PLMR's shares have risen by 13.93% over the past month compared to the industry's 0.98% [5] - Over the last quarter, PLMR shares increased by 13.3%, and over the past year, they have gained 68.3%, while the S&P 500 only moved 4.18% and 24.21%, respectively [6] Trading Volume - The average 20-day trading volume for PLMR is 186,666 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, five earnings estimates for PLMR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $5.92 to $6.54 [9] - For the next fiscal year, four estimates have also moved higher without any downward revisions [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, PLMR is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]