Here's Why RenaissanceRe (RNR) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5] Value Score - The Value Score identifies attractive and discounted stocks using various financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like short-term price changes and earnings estimate revisions [4] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best overall value, growth potential, and momentum [5] Zacks Rank Integration - The Zacks Rank, based on earnings estimate revisions, is a proprietary model that aids in building a successful investment portfolio [6] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] - Stocks with lower ranks (4 or 5) should be avoided, even if they have high Style Scores, due to declining earnings forecasts [9] Company Spotlight: RenaissanceRe Holdings Ltd. (RNR) - RenaissanceRe, established in 1993, specializes in property-catastrophe reinsurance and offers various specialty reinsurance products [10] - RNR currently holds a 3 (Hold) Zacks Rank and has a VGM Score of A, with a Momentum Style Score of A, reflecting a 9.2% increase in share price over the past four weeks [11] - The Zacks Consensus Estimate for RNR's fiscal 2024 earnings has risen by $0.81 to $38.07 per share, with an average earnings surprise of 27.4% [11][12]