Shares of Symetra Financial Corporation (NYSE: SYA) touched a new 52-week high, reaching $21.35 in the second half of the trading session on Jun 2. The stock closed at $21.31, reflecting a solid return of 51.9% over the past one year. The trading volume for the session was 0.3 million shares.
Despite the strong price appreciation, this Zacks Rank #1 (Strong Buy) stock has plenty of upside left, given its sturdy estimate revisions over the last 60 days.
Growth Drivers
Impressive first-quarter 2014 results, along with prudent expense management were the primary growth drivers for Symetra Financial.
Symetra Financial reported first-quarter 2014 results on Apr 23. Adjusted earnings of 56 cents per share outpaced the Zacks Consensus Estimate by 36.6%. Results benefited from lower expenses and a slight rise in net investment income, partially offset by a decline in premiums.
Additionally, based on strong first-quarter results, Symetra Financial revised its earnings outlook higher. The company anticipates adjusted operating income per share of $1.80-$2.00 for full-year 2014.
Estimate Revisions Show Strength
Over the last 60 days, all 7 estimates for 2014 have been revised upward, lifting the Zacks Consensus Estimate by roughly 9.9% to $1.88 per share. For 2015, 5 out of 7 estimates moved north over the same time frame, leading the Zacks Consensus Estimate to rise nearly 3.3% to $1.89 per share.
Some other insurance stocks worth considering include First American Financial Corporation (NYSE: FAF), The Travelers Companies, Inc. (NYSE: TRV) and National General Holdings Corp. (NASDAQ: NGHC). All of these carry the same Zacks Rank as Symetra Financial.
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