AXIS Capital(AXS) Zacks Investment Research·2024-02-29 15:16Core Viewpoint - Axis Capital (AXS) has shown strong performance, with a 5.2% increase in stock price over the past month and a 13.1% gain since the beginning of the year, outperforming the Zacks Finance sector and the Zacks Insurance - Property and Casualty industry [1] Financial Performance - Axis Capital reported an EPS of $2.94 in its last earnings report, significantly beating the consensus estimate of $-1.25, and also exceeded the revenue estimate by 2.67% [2] - For the current fiscal year, Axis Capital is projected to achieve earnings of $10.15 per share on revenues of $5.92 billion, reflecting a 3.05% increase in EPS and a 3.61% increase in revenues [2] - The next fiscal year forecasts earnings of $11.17 per share on $6.37 billion in revenues, indicating a year-over-year growth of 10.05% in EPS and 7.44% in revenues [2] Valuation Metrics - Axis Capital's current trading metrics show a P/E ratio of 6.2X for the current fiscal year EPS estimates, compared to the peer industry average of 13.5X [4] - The stock trades at a trailing cash flow basis of 5.9X, while the peer group's average is 16.1X, and it has a PEG ratio of 1.23 [4] Zacks Rank - Axis Capital holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [5] - The stock meets the criteria for selection, as it has a Zacks Rank of 1 or 2 and Style Scores of A or B, suggesting potential for further price appreciation [5] Industry Comparison - The Progressive Corporation (PGR), a peer in the industry, also shows strong performance with a Zacks Rank of 1 (Strong Buy) and is expected to post earnings of $8.90 per share on revenues of $71.42 billion for the current fiscal year [6] - The Insurance - Property and Casualty industry is performing well, ranking in the top 15% of all industries, providing favorable conditions for both Axis Capital and its peers [6]