Have you been paying attention to shares of Skyward Specialty Insurance (SKWD)? Shares have been on the move with the stock up 10% over the past month. The stock hit a new 52-week high of $50.21 in the previous session. Skyward Specialty Insurance has gained 47.6% since the start of the year compared to the 24.1% move for the Zacks Finance sector and the 30.4% return for the Zacks Insurance - Property and Casualty industry.
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 29, 2024, Skyward reported EPS of $0.71 versus consensus estimate of $0.64.
For the current fiscal year, Skyward is expected to post earnings of $3.06 per share on $1.14 billion in revenues. This represents a 45.02% change in EPS on a 28.65% change in revenues. For the next fiscal year, the company is expected to earn $3.37 per share on $1.27 billion in revenues. This represents a year-over-year change of 10.08% and 11.68%, respectively.
Skyward may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Skyward has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.8X. On a trailing cash flow basis, the stock currently trades at 22.2X versus its peer group's average of 13.8X. Additionally, the stock has a PEG ratio of 0.91. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Skyward currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Skyward meets the list of requirements. Thus, it seems as though Skyward shares could have potential in the weeks and months to come.
Shares of SKWD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Allstate Corporation (ALL). ALL has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. The Allstate Corporation beat our consensus estimate by 77.73%, and for the current fiscal year, ALL is expected to post earnings of $19.07 per share on revenue of $63.9 billion.
Shares of The Allstate Corporation have gained 2.6% over the past month, and currently trade at a forward P/E of 12.36X and a P/CF of 47.87X.
The Insurance - Property and Casualty industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SKWD and ALL, even beyond their own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Skyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis Report
The Allstate Corporation (ALL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。