Should You Add Old Republic (ORI) Stock for Better Returns?

Core Viewpoint - Old Republic International Corporation (ORI) is positioned as a strong investment opportunity due to its solid market presence, niche focus, low property catastrophe exposure in its General Insurance segment, and robust capital position [1] Financial Performance - The Zacks Consensus Estimate for ORI's 2024 earnings per share indicates a year-over-year increase of 3.8% [2] - The consensus estimate for revenues is projected at $7.96 billion, reflecting a year-over-year improvement of 6.8% [2] - ORI has achieved a stock gain of 23.1% over the past year, outperforming the industry growth of 19.6% [3] - The company has a solid record of beating earnings estimates in three of the last four quarters, with an average surprise of 6.61% [19] Valuation Metrics - ORI shares are trading at a price-to-book multiple of 1.30, which is lower than the industry average of 2.53 [12] - The company has a Value Score of B, indicating it is among the most attractive value stocks [12] Business Strengths - ORI has a strong operational foundation, being the third-largest title insurer in the U.S., and has a history of returning wealth to shareholders through dividends and share repurchases [6] - The company has increased dividends for 43 consecutive years and has been paying dividends for 83 years, making it appealing for yield-seeking investors [6] - A recent $1.1 billion share buyback program has been approved by the board [6] - The General Insurance segment is expected to benefit from better risk selection, meticulous pricing, and increased use of analytics, maintaining a combined ratio below 96 for 14 years [20] Growth Projections - Earnings have grown by 10.3% over the past five years, surpassing the industry average of 9.2% [10] - The Title business is anticipated to continue benefiting from an expanding presence in the commercial real estate market [13] - The return on invested capital in the trailing 12 months was 5.9%, significantly better than the industry average of 2% [14]