AXIS Capital(US:AXS) ZACKSยท2025-08-29 16:31Core Insights - AXIS Capital Holdings Limited (AXS) has seen a 23.5% increase in share price over the past year, outperforming its industry and the broader market indices [1] - The stock closed at $98.64, close to its 52-week high of $107.19, indicating strong investor confidence [2] - AXIS Capital has a market capitalization of $7.71 billion and has consistently beaten earnings estimates over the last four quarters, averaging a 13.39% beat [2] Performance Metrics - AXS is trading above its 50-day and 200-day simple moving averages of $97.82 and $95.00, respectively, indicating solid upward momentum [3] - The company has a return on equity of 18.7%, significantly higher than the industry average of 7.6%, showcasing efficient use of shareholders' funds [13] Growth Strategy - AXIS Capital is focusing on growth areas such as wholesale insurance, lower middle markets, and specialty reinsurance lines [5][14] - The company aims to reduce its general and administrative expense ratio to below 11% by 2026 through investments in digital capabilities and operational efficiencies [5][16] Valuation and Analyst Sentiment - AXS shares are trading at a forward price-to-book value of 1.37X, lower than the industry average of 1.55X, indicating attractive valuation [7] - The Zacks Consensus Estimate for 2025 earnings per share indicates a 6.8% year-over-year increase, with revenues projected to grow by 5.6% [8] - Analyst sentiment is optimistic, with estimates for 2025 and 2026 earnings raised by 3.8% and 0.08%, respectively, in the past 30 days [9] Dividend and Financial Health - AXIS Capital has a strong dividend history, having increased its dividend for 18 consecutive years, currently yielding 1.7%, well above the industry average of 0.2% [18] - The company is well-positioned for long-term growth due to higher return on capital, favorable growth estimates, and attractive valuations [20]