Everest Re (RE) Stock Jumps 3.3%: Will It Continue to Soar?

Everest Re (RE) shares ended the last trading session 3.3% higher at $253.85. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.7% loss over the past four weeks.

Everest Re has diversified income streams to ensure profitability. While the Insurance segment should benefit from new business growth, strong renewal retention and continued favorable rate increases, the Reinsurance segment is poised to grow on partnerships with core clients and its position as a preferred reinsurance partner.

This seventh-largest global property and casualty reinsurer is focused on building a portfolio, with a mix of product lines with better rate adequacy and higher long-term margins. The insurer stays focused on building a portfolio mix that has product lines with better rate adequacy and higher long-term margins.

Everest Re boasts a strong capital position, with sufficient cash generation capabilities and benefits from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities.

This reinsurance company is expected to post quarterly earnings of $4.23 per share in its upcoming report, which represents a year-over-year change of +415.7%. Revenues are expected to be $3.26 billion, up 11.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Everest Re, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Everest Re is a member of the Zacks Insurance - Property and Casualty industry. One other stock in the same industry, Heritage Insurance (HRTG), finished the last trading session 8.4% lower at $2.08. HRTG has returned -17.8% over the past month.

For Heritage Insurance , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.14. This represents a change of +76.3% from what the company reported a year ago. Heritage Insurance currently has a Zacks Rank of #2 (Buy).

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