RenaissanceRe Holdings Ltd. (RNR) Hits Fresh High: Is There Still Room to Run?

Company Performance - RenaissanceRe (RNR) shares have increased by 4.5% over the past month, reaching a new 52-week high of $269.61, and have gained 37.3% since the start of the year, outperforming the Zacks Finance sector (17.3%) and the Zacks Insurance - Property and Casualty industry (27.1%) [1] - The company has a strong record of positive earnings surprises, having beaten earnings consensus estimates in the last four quarters, with the latest EPS reported at $12.41 against a consensus estimate of $10.88 [2] Financial Projections - For the current fiscal year, RenaissanceRe is expected to post earnings of $39.01 per share on revenues of $11.51 billion, reflecting a 3.92% change in EPS and a 32.25% change in revenues [3] - For the next fiscal year, earnings are projected to be $35.46 per share on revenues of $11.81 billion, indicating a year-over-year change of -9.11% in EPS and 2.59% in revenues [3] Valuation Metrics - RenaissanceRe has a Value Score of B, with Growth and Momentum Scores of C and D, respectively, resulting in a combined VGM Score of B [6] - The stock trades at 6.9X current fiscal year EPS estimates, below the peer industry average of 13.7X, and at 8.2X trailing cash flow compared to the peer group's average of 13.1X [7] Zacks Rank - RenaissanceRe holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The company meets the criteria for selection based on Zacks Rank and Style Scores, indicating potential for future performance [9] Industry Context - The Insurance - Property and Casualty industry is positioned in the top 8% of all industries, suggesting favorable conditions for both RenaissanceRe and its peers [12]