AIZ Rises 14.9% in a Year: A Signal for Investors to Hold Tight?

Core Viewpoint - Assurant, Inc. (AIZ) has shown strong performance with a 14.9% increase in share price over the past year, outperforming the industry growth of 11.1% and the Finance sector's return of 25.6% [1] Performance Metrics - AIZ's current stock price is $200.14, trading above its 200-day simple moving average (SMA) of$192.78, indicating solid upward momentum [3] - The average volume of shares traded in the last three months was 0.3 million, with a market capitalization of $10.26 billion [1] Growth Projections - The Zacks Consensus Estimate for AIZ's 2025 earnings per share indicates a year-over-year increase of 1.4$12.40 billion, reflecting a 3.7% improvement [4] - For 2026, earnings per share and revenues are expected to increase by 13.2% and 3.8%, respectively, compared to 2024 estimates [4] Earnings History - AIZ has experienced earnings growth of 16.6% over the past five years, surpassing the industry average of 9.7% [5] - The company has a strong earnings surprise history, exceeding earnings estimates in each of the last four quarters by an average of 17.03% [7] Valuation Metrics - AIZ is trading at a forward 12-month price-to-book ratio of 2.01X, which is lower than the industry average of 2.38X, indicating a compelling investment opportunity [8] - The company has a Value Score of A, suggesting attractive valuations [8] Return on Capital - AIZ's return on equity in the trailing 12 months was 17.2%, outperforming the industry average of 15.1% [11] - The return on invested capital (ROIC) was 11.2%, significantly higher than the industry average of 2.3%, reflecting efficient capital utilization [12] Strategic Focus - Assurant is focusing on growing fee-based capital-light businesses, which currently account for 52% of segmental revenues, with expectations for double-digit growth in the long term [13] - The company is ramping up its Connected Living platform, aiming to double margins to 8% over the long term [14] Capital Management - Assurant's board approved an 11% increase in cash dividends, marking 20 consecutive quarters of dividend hikes [15] - The company has $351 million remaining under its current share repurchase authorization, with expected repurchases for 2025 ranging between$200 million and $300 million [15] Overall Assessment - AIZ's strong performance in the Global Lifestyle business, growth in fee-based capital-light sectors, solid capital management, and favorable growth estimates present significant growth opportunities [16] - The company has a VGM Score of B, indicating attractive value, growth, and momentum compared to peers [17]