RLI Corp. (RLI) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum [2] Value Score - The Value Style 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 Style Score assesses a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating short-term price changes and monthly earnings estimate shifts [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [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 all 50 states and the District of Columbia [11] - Currently rated 3 (Hold) by Zacks, RLI has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 5.1% over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2025 have raised the Zacks Consensus Estimate by $0.28 to $3.35 per share, with an average earnings surprise of +9% [12]