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MARKETS LIVE BLOG:

STOCKS TRADE MIXED AFTER ISRAEL STRIKE-FUELLED TUMBLE

Shares of Netflix, the first of the megacap techs to report, slide in early trading

Universal Insurance (UVE) Moves 5% Higher: Will This Strength Last?

Zacks Equity Research
·2 min read

Universal Insurance Holdings (UVE) shares soared 5% in the last trading session to close at $19.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.2% gain over the past four weeks.

Universal Insurance Holdings should continue to benefit from its slod market presence in personal residential homeowners insurance and services. It is poised to capitalize on the growing Homeowners Multi-peril insurance opportunity while diversification offers earnings stability. Continued rate hikes should support underwriting profitability.

A robust reinsurance program supports a strong balance sheet. Universal Insurance Holdings continues to invest in technological upgrades.

The November 2021 special dividend approval marks more than 10 years of special dividend.

Universal Insurance estimates bottom line between $2.75 and $3.00 in 2021 while ROAE is estimated between 17% and 19%.

This property and casualty insurance company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +135.7%. Revenues are expected to be $286.63 million, up 4.9% 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.

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For Universal Insurance, 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 UVE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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UNIVERSAL INSURANCE HOLDINGS INC (UVE) : Free Stock Analysis Report
 
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