Skyward Specialty Insurance Group, Inc. (SKWD) Soars to 52-Week High, Time to Cash Out?

Company Performance - Skyward Specialty Insurance (SKWD) shares have increased by 10% over the past month and reached a new 52-week high of $50.21, with a year-to-date gain of 47.6% compared to 24.1% for the Zacks Finance sector and 30.4% for the Zacks Insurance - Property and Casualty industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $0.71 against a consensus estimate of $0.64 in its last earnings report on October 29, 2024 [2] - For the current fiscal year, Skyward is projected to achieve earnings of $3.06 per share on revenues of $1.14 billion, reflecting a 45.02% increase in EPS and a 28.65% increase in revenues [3] Valuation Metrics - Skyward has a Value Score of A, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6] - The stock trades at 16.3X current fiscal year EPS estimates, which is above the peer industry average of 13.8X, and at 22.2X on a trailing cash flow basis compared to the peer group's average of 13.8X [7] - The PEG ratio stands at 0.91, indicating that while the stock is not in the top echelon from a value perspective, it still holds potential [7] Zacks Rank - Skyward currently holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The recommendation for investors is to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, which Skyward meets, suggesting potential for future growth [9] Industry Context - The Insurance - Property and Casualty industry is positioned in the top 14% of all industries, indicating favorable conditions for both Skyward and its peers [12]