Markel Group Inc. MKL has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of March 27, 2025, was $1,871.56, down 9.3% from its 52-week high of $2,063.68.

The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.

With a market capitalization of $23.9 billion, the average volume of shares traded in the last three months was 0.06 million. MKL has a solid earnings surprise history. It beat estimates in two of the last four quarters and missed in two, the average being 1.78%.

MKL Price Movement vs. 50-Day Moving Average

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MKL is an Outperformer

Shares of Markel Group have gained 23.1% in the past year against its industry decline of 2.8%. The stock has outperformed the Finance sector and the Zacks S&P 500 composite’s growth of 15.7% and 9.3%, respectively.

MKL Outperformed Industry, Sector and S&P 500 in One Year

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MKL’s Growth Projection Encourages

The Zacks Consensus Estimate for Markel Group’s 2025 earnings per share indicates a year-over-year increase of 16.6%. The consensus estimate for revenues is pegged at $15.20 billion, implying a year-over-year improvement of 2.5%. 

The consensus estimate for 2026 earnings per share and revenues indicates an increase of 10.9% and 4.9%, respectively, from the corresponding 2025 estimates. 

Earnings have grown 23.1% in the past five years, better than the industry average of 13.5%. 

Factors Benefiting MKL Stock

MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the momentum.

Investment income should continue to benefit from an improving rate environment, higher interest income on cash equivalents, fixed maturity securities and short-term investments due to higher yields.

Markel Group considers strategic buyouts, a prudent approach to ramp up its growth profile. Acquisitions have helped the company enhance its surety capabilities, ramp up Markel Ventures’ revenues and expand its reinsurance product offerings. The insurer has been pursuing acquisitions to achieve profitable growth in insurance operations and create additional value on a diversified basis in Markel Ventures’ operations.

Higher revenues at construction services and transportation-related businesses due to a combination of increased demand, higher prices and growth, as well as a rise in production at one of the equipment manufacturing businesses, are expected to boost operating revenues. The increase also reflected a full-year contribution from Metromont.

Distribution of Wealth

Banking on a strong capital position, the company engages in share buybacks, a prudent way to distribute wealth to its shareholders. However, it presently prefers to invest in organic growth initiatives for its Insurance business. In 2024, MKL repurchased shares worth 573 million. In 2024, the board authorized an additional $2 billion in share repurchases. Also, given its solid cash position of $3.9 billion, the company should not face any difficulty in meeting short-term obligations.

Expensive Valuation

The company’s shares are trading at a price-to-earnings multiple of 19.29, higher than the industry average of 16.67. MKL is also expensive compared with Griffon Corporation GFF, 3M Company MMM and Carlisle Companies Incorporated CSL. 

Final Take on MKL

Given the company's strong stock performance, solid retention levels, an improving rate environment, favorable growth estimates and solid capital position, current shareholders may find it wise to hold onto MKL shares. Markel Group's new business volume and prudent capital deployment present significant growth opportunities. 

Given the premium valuation, investors should wait for a better entry point for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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3M Company (MMM) : Free Stock Analysis Report

Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report

Markel Group Inc. (MKL) : Free Stock Analysis Report

Griffon Corporation (GFF) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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