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Here's Why RLI Corp. (RLI) is a Strong Growth Stock
RLIRLI(US:RLI) ZACKSยท2025-10-28 14:46

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9][10] Company Spotlight: RLI Corp. - RLI Corp., a specialty property-casualty underwriter based in Peoria, IL, operates primarily through RLI Insurance Company and serves 50 states and the District of Columbia [11] - Currently rated 3 (Hold) by Zacks, RLI has a VGM Score of A and a Growth Style Score of B, with a projected year-over-year earnings growth of 14.6% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a solid earnings surprise average of +9% position RLI as a potential growth investment [12]