Here's Why Hold Strategy is Apt for Everest Group (EG) Stock

Core Insights - Everest Group, Ltd. (EG) demonstrates strong product diversification, increased income from its fixed income portfolio, and solid capital position, making it a valuable addition to investment portfolios [1][10] - The company is projected to see earnings per share and revenues increase by 11.3% and 11.5%, respectively, in 2025 compared to 2024 [2] - The Zacks Consensus Estimate for EG's 2024 revenues is $17.74 billion, reflecting a year-over-year growth of 21.4% [5] Financial Performance - EG has consistently surpassed earnings estimates in the last four quarters, with an average beat of 37.54% [6] - The annualized after-tax operating income return on equity was 20% in Q1, up 280 basis points year-over-year, while the trailing 12-month return on equity stands at 24.9%, an increase of 1,190 basis points year-over-year [7] - The company has a consistent dividend growth rate, with an eight-year CAGR of 34.9% from 2016 to 2023, targeting a total shareholder return on equity of over 17% from 2024 to 2026 [18] Growth Drivers - Global presence, product diversification, and a high retention rate are key factors driving EG's growth, particularly in the Insurance segment, which is expected to benefit from increases in property and specialty casualty business [9] - The Reinsurance segment is also poised for growth due to ongoing disruptions and evolution in the market [9] - Net investment income is expected to improve from higher income in the fixed income portfolio and an enhanced interest rate environment [17] Stock Performance - Everest Group currently holds a Zacks Rank 3 (Hold) and has gained 6.4% year-to-date, outperforming the industry growth of 4% [4] - The company has a VGM Score of A, indicating attractive value, growth, and momentum [8] - The Growth Score of B reflects the company's promising growth prospects [11]