Reinsurance Gr (NYSE:RGA) Stock, Quote.Headers.trade-ideas

Reinsurance Gr

Reinsurance Group of America Inc is an insurance holding company with operations in the United States, Latin America, Canada, Europe, Africa, Asia, and Australia. The core products and services include life reinsurance, living benefits reinsurance, group reinsurance, health reinsurance, financial solutions, facultative underwriting, and product development. The company's operations are divided into traditional and financial solution businesses.

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Brighthouse Financial, Inc. - Common Stock

Sun Life Financial (NYSE: SLF) has been benefiting from its focus on Asia operations, growing asset management businesses and the scale-up and integration of U.S. operations. Earnings of SLF have risen 5.4% over the last five years.

Sun Life Grows on Solid Asia Business Amid Cost Woes

Analyst Ratings

VOYA

Sun Life Financial Inc. (NYSE: SLF) delivered second-quarter 2024 underlying net income of $1.25 per share, which beat the Zacks Consensus Estimate by 5.9%. The bottom line increased 6.8% year over year. Underlying net income was $730.8 million (C$1 billion), which increased 9% year over year.

Sun Life Q2 Earnings Beat, Revenues Miss Estimates

Manulife Financial Corporation (NYSE: MFC) delivered second-quarter 2024 core earnings of 66 cents per share, which beat the Zacks Consensus Estimate by 3.1%. The bottom line improved 6.4% year over year.

Manulife Q2 Earnings Beat Estimates, NBV Sales Rise Y/Y

Reinsurance Group of America, Incorporated Common Stock

Reinsurance Group of America Inc

Rocket Global Acquisition Corp

Barclays analyst Alex Scott initiates coverage on Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Overweight rating and announces Price Target of $255.

Price Target

Initiation

Barclays Initiates Coverage On Reinsurance Gr with Overweight Rating, Announces Price Target of $255

Reinsurance Gr's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) short percent of float has fallen 18.84% since its last report. The company recently reported that it has 281 thousand shares sold short, which is 0.56% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.0 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Reinsurance Gr Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725390021_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Reinsurance Gr has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Reinsurance Gr's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Reinsurance Gr's peer group average for short interest as a percentage of float is 1.93%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(RGA) - Analyzing Reinsurance Gr's Short Interest

Morgan Stanley analyst Nigel Dally maintains Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Equal-Weight and lowers the price target from $238 to $236.

Morgan Stanley Maintains Equal-Weight on Reinsurance Gr, Lowers Price Target to $236

Sun Life Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slf#NYSE">SLF</a>) has been benefiting from its focus on Asia operations, growing asset management businesses and the scale-up and integration of U.S. operations. Earnings of SLF have risen 5.4% over the last five years.
This third-largest insurer in Canada has a decent earnings surprise history. It surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 1.76%.
Sun Life&#39;s focus on the emerging economies of Asia that are expected to provide higher returns and the North American markets bodes well for long-term growth. SLF has a strong presence in China, Philippines, India, Hong Kong and Indonesia and has also forayed into Malaysia and Vietnam. Contribution from Asia business to Sun Life&#39;s earnings has increased to 21% over the last few years.
Sun Life envisions being one of the top five players and remains focused on growing its voluntary benefits business. The life insurer is also improving its business mix and is thus shifting its growth focus toward products that block lower capital and offer more predictable earnings.
Sun Life Investment Management makes investments in private fixed-income mortgages and real estate. It invests in pension plans and other institutional investors. These are indicative of SLF&#39;s efforts to strengthen Asset Management, which provides a higher return on equity, requires lower capital and sees lesser volatility and has the potential for an earnings upside.
Operational efficiency has been aiding Sun Life in building a strong capital position. The life insurer&#39;s capital outlay includes a 40-50% dividend payout over the medium term.
However, expenses have increased at Sun Life over the past few years due to high employee expenses, premises and equipment, service fees, amortization of intangible assets and other expenses. These, in turn, weigh on margin expansion. The life insurer remains committed toward balancing both metrics, failing which, the bottom line might suffer. The company estimates integration activities to drive run-rate cost savings of $60 million by 2024.
Nonetheless, SLF&#39;s trailing 12-month return on equity was 17.5%, ahead of the industry average of 15.5%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders&#39; funds. Given the company&#39;s ongoing shift to fee-based capital-light businesses, SLF reiterated its medium-term ROE target of 18%.
Also, the return on invested capital in the trailing 12 months was 0.8%, better than the industry average of 0.7%. This reflects SLF&#39;s efficiency in utilizing funds to generate income.&nbsp;
<h3>Some Key Industry Players</h3>
Other players in the insurance industry are Brighthouse Financial (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bhf#NASDAQ">BHF</a>), Reinsurance Group of America, Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rga#NYSE">RGA</a>) and Primerica (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pri#NYSE">PRI</a>).
Brighthouse Financial&#39;s earnings surpassed estimates in three of the last four quarters and missed in one, the average surprise being 3.76%.
With an expansive and compelling suite of life and annuity products and a strong market presence, BHF aims to become a premier player in the individual insurance market.&nbsp; Brighthouse is also revamping its life insurance business to boost annuity sales. Sales of Shield Level annuities and variable annuities with FlexChoice Access should drive Annuity sales.&nbsp; The insurer remains focused on transitioning the business mix to less capital-intensive products.
Reinsurance Group&#39;s earnings surpassed estimates in each of the last four quarters, the average surprise being 20.51%.
RGA has been benefiting from an increase in new business volumes, favorable longevity experience, a stronger invested asset base, business expansion in the pension risk transfer market and effective capital deployment.
Primerica&#39;s earnings surpassed estimates in three of the last four quarters and missed in one, the average surprise being 1.74%.
This second-largest issuer of term-life insurance coverage in North America aims to be a successful senior health business while continuing to enhance its shareholders&#39; value. Strong demand for protection products drives sales growth and policy persistency benefit the life insurer. A strong business model makes Primerica well-poised to cater to the middle market&#39;s increased demand for financial security.
<a href="https://www.zacks.com/stock/news/2322684/sun-life-slf-grows-on-solid-asia-business-amid-cost-woes?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2322684">To read this article on Zacks.com click here.</a>

Sun Life Financial Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slf#NYSE">SLF</a>) delivered second-quarter 2024 underlying net income of $1.25 per share, which beat the Zacks Consensus Estimate by 5.9%. The bottom line increased 6.8% year over year. Underlying net income was $730.8 million (C$1 billion), which increased 9% year over year.
Results reflected continued solid growth in Canada and Asia. The U.S. also saw favorable experience in Group Benefits, partially offset by residual headwinds in dental.
Revenues of $6.5 billion increased 14.2% year over year but missed the Zacks Consensus Estimate by 3%.
Wealth sales &amp; asset management gross flows of $33.8 billion (C$46.3 billion) increased 9.1% year over year. Group - Health &amp; Protection sales of $362.5 million (C$496 million) decreased 17.7% year over year. Individual - Protection sales of $550.3 million (C$753 million) jumped 24.7% year over year.
New business contractual service margin was $319.4 million (C$437 million), up 61.9% year over year.
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<h3>Sun Life Financial Inc. Price, Consensus and EPS Surprise</h3>
<h3><img alt="Sun Life Financial Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/15/1723558499.png" style="height:265px; width:574px" title="" /></h3>
Sun Life Financial Inc. price-consensus-eps-surprise-chart | Sun Life Financial Inc. Quote
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<h3>Segment Results</h3>
SLF Canada&#39;s underlying net income increased 8% year over year to $294 million (C$402 million). Canada witnessed solid results at Wealth &amp; Asset Management and Individual - Protection.
Wealth sales &amp; asset management gross flows of $3.6 billion ($5 billion) climbed 72% year over year. Group - Health &amp; Protection increased year over year but Individual - Protection sales declined.
SLF U.S.&#39; underlying net income was $149 million, which decreased 5% year over year, reflecting soft results at Individual &ndash; Protection and Group - Health &amp; Protection.
U.S. group sales of $243 million decreased 22%, reflecting lower Medicare and Medicaid sales in Dental due to large institutional sales in the prior year, partially offset by higher medical stop-loss sales.
SLF Asset Management reported underlying net income of $224.3 million (C$307 million), which increased 4% year over year, attributable to stable results in MFS. Asset Management exited the reported quarter with $0.8 trillion (C$1.072 trillion) of AUM, comprising $618 billion in MFS and $165.9 billion (C$227 billion) in SLC Management.
SLF Asia reported underlying net income of $130.8 million (C$179 million), which grew 19% year over year, driven by solid results at Wealth &amp; asset management and Individual - Protection.
Individual sales of $428 million (C$586 million) jumped 30% year over year. Wealth sales &amp; asset management gross flows of $1.5 billion ($2 billion) increased 24% year over year. New busines
New business CSM of $160.8 million (C$220 million) increased 86.4% year over year, primarily driven by sales in Hong Kong.
<h3>Financial Update &nbsp;</h3>
Global assets under management were $1.1 billion (C$1.465 trillion), up 7% year over year.
Sun Life Assurance&#39;s Life Insurance Capital Adequacy Test (LICAT) ratio was 142% as of Jun 30, 2024, up 300 basis points (bps) from Jun 30, 2023, level.
The LICAT ratio for Sun Life (including cash and other liquid assets) was 150%, which expanded 20 bps year over year.
Sun Life&#39;s return on equity was 11.7% in the second quarter of 2024, which contracted 100 bps year over year. The underlying return on equity of 18.1% expanded 40 bps year over year. The leverage ratio of 22.61% improved 70 bps from Jun 30, 2023, level.
<h3>Dividend Update</h3>
The company&#39;s board of directors approved a quarterly dividend of 81 cents per share. The amount will be paid out on Sep 27, 2024, to shareholders of record at the close of business on Aug 28.
<h3>Zacks Rank</h3>
Sun Life currently carries a Zacks Rank #4 (Sell).
<h3>Performance of Other Insurers</h3>
Voya Financial, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voya#NYSE">VOYA</a>) reported second-quarter 2024 adjusted operating earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line, however, decreased 1.7% year over year. Adjusted operating revenues amounted to $324 million, down 6.6% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Net investment income declined 5% year over year to $518 million. Premiums totaled $790 million, up 16.7% from the year-ago quarter. As of Jun 30, 2024, VOYA&#39;s assets under management, assets under administration and advisement totaled $861.3 billion.
Reinsurance Group of America, Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rga#NYSE">RGA</a>) reported second-quarter 2024 adjusted operating earnings of $5.48 per share, which beat the Zacks Consensus Estimate by 10.9%. The bottom line increased 24.5% from the year-ago quarter. RGA&#39;s operating revenues of $5.1 billion improved 20.3% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues. It beat the consensus estimate by 4.7%.
Net premiums of $3.9 billion jumped 17.5% year over year. RGA deployed $307 million for in-force transactions. Investment income and net of related expenses increased 26.3% from the prior-year quarter to $1.1 billion. The average investment yield increased 23 basis points to 4.65%, primarily due to higher new money rates.
Lincoln National Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lnc#NYSE">LNC</a>) second-quarter 2024 adjusted earnings of $1.84 per share beat the Zacks Consensus Estimate by 3.4%. However, the bottom line declined 8.9% year over year. Adjusted operating revenues of $4.5 billion dropped 4.3% year over year in the quarter under review. The top line lagged the consensus mark by 2.7%.
Fee income declined 1.9% year over year to $1.3 billion, which missed the Zacks Consensus Estimate by 2.1%. Insurance premiums of $1.6 billion rose 0.8% year over year. The metric beat the consensus mark by 0.7%. LNC&#39;s net investment income of $1.3 billion declined 11.7% year over year and missed the consensus mark by 1.7%. Meanwhile, other revenues fell 5.9% year over year.
<a href="https://www.zacks.com/stock/news/2321448/sun-life-slf-q2-earnings-beat-revenues-miss-estimates?cid=CS-BENZ-FT-analyst_blog|earnings_article-2321448">To read this article on Zacks.com click here.</a>

Wells Fargo analyst Elyse Greenspan maintains Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Overweight and raises the price target from $236 to $239.

Wells Fargo Maintains Overweight on Reinsurance Gr, Raises Price Target to $239

Manulife Financial Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mfc#NYSE">MFC</a>) delivered second-quarter 2024 core earnings of 66 cents per share, which beat the Zacks Consensus Estimate by 3.1%. The bottom line improved 6.4% year over year.
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Manulife Financial Corp Price, Consensus and EPS Surprise
<img alt="Manulife Financial Corp Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/52/1723120916.png" style="height:265px; width:577px" title="" />
Manulife Financial Corp price-consensus-eps-surprise-chart | Manulife Financial Corp Quote
Core earnings of $1.3 billion (C$1.7 billion) increased 8.3% year over year. The improvement was driven by continued business growth momentum and updates to actuarial methods and assumptions in the second half of 2023, higher fee income from favorable market impacts and positive net flows, a favorable tax true-up, strong growth in Group Insurance and favorable net insurance experience.
New business value (NBV) in the reported quarter was $528 million (C$723 million), up 21.4% year over year.
New business contractual service margin of $459 million (C$628 million) rose 4.1% year over year.
Annualized premium equivalent (APE) sales increased 16.7% year over year to $1.4 billion (C$1.9 billion), attributable to higher sales in Asia and Canada.
The expense efficiency ratio increased 30 basis points (bps) to 45.4%. The increase reflects a rise of 6% and 7% in pre-tax core earnings and core expenses, respectively.
Wealth and asset management assets under management and administration were $682 billion (C$933.1 billion), up 10.3% year over year. 
Retail net outflows of $0.1 billion remained unchanged year over year, as increased demand for investment products amid equity market recovery and improved investor sentiment was offset by higher redemptions.
Core return on equity, measuring the company&#39;s profitability, expanded 20 bps year over year to 15.7%. The financial leverage ratio deteriorated 120 basis points to 24.6% at the end of the quarter.
Life Insurance Capital Adequacy Test ratio was 139% as of Jun 30, 2024, up from 136% reported in the year-ago quarter.
Adjusted book value per common share was $33.96, up 15% year over year.
</div>
<h3>Segmental Performance</h3>
Global Wealth and Asset Management division&#39;s core earnings came in at $291.6 million (C$399 million), up 22.5% year over year.
Asia division&#39;s core earnings totaled $472 million, up 40% year over year. NBV, APE sales and new business CSM increased 19%, 7% and 10%, respectively, year over year, reflecting higher sales volumes in Japan and Hong Kong.
Manulife Financial&#39;s Canada division&#39;s core earnings of $294 million (C$402 million) were up 6.1% year over year. APE sales and NBV increased 61% and 50%, respectively, driven by higher sales volumes in all business units, led by a large-case Group Insurance sale. New business CSM grew 33%, driven by margin expansion in Individual Insurance and higher sales volumes in segregated fund products.
The U.S. division reported core earnings of $303 million, down 11% year over year. APE sales decreased 4% year over year with a shift in product mix, while NBV grew 3%. New business CSM decreased 30% due to a change in product mix and the impact of higher interest rates.
<h3>Zacks Rank</h3>
Manulife Financial currently carries a Zacks Rank #4 (Sell).
<h3>Performance of Other Life Insurers</h3>
Voya Financial, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voya#NYSE">VOYA</a>) reported second-quarter 2024 adjusted operating earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line, however, decreased 1.7% year over year. Adjusted operating revenues amounted to $324 million, down 6.6% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Net investment income declined 5% year over year to $518 million. Premiums totaled $790 million, up 16.7% from the year-ago quarter. As of Jun 30, 2024, VOYA&#39;s assets under management, assets under administration and advisement totaled $861.3 billion.
Lincoln National Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lnc#NYSE">LNC</a>) second-quarter 2024 adjusted earnings of $1.84 per share beat the Zacks Consensus Estimate by 3.4%. However, the bottom line declined 8.9% year over year. Adjusted operating revenues of $4.5 billion dropped 4.3% year over year in the quarter under review. The top line lagged the consensus mark by 2.7%.
Fee income declined 1.9% year over year to $1.3 billion, which missed the Zacks Consensus Estimate by 2.1%. Insurance premiums of $1.6 billion rose 0.8% year over year. The metric beat the consensus mark by 0.7%. Net investment income of $1.3 billion dipped 11.7% year over year and missed the consensus mark by 1.7%. Meanwhile, other revenues fell 5.9% year over year.
Reinsurance Group of America, Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rga#NYSE">RGA</a>) reported second-quarter 2024 adjusted operating earnings of $5.48 per share, which beat the Zacks Consensus Estimate by 10.9%. The bottom line increased 24.5% from the year-ago quarter. Net foreign currency fluctuations had a favorable effect of 6 cents per share on adjusted operating income compared with the prior year. RGA&#39;s operating revenues of $5.1 billion improved 20.3% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues. It beat the consensus estimate by 4.7%.
Net premiums of $3.9 billion jumped 17.5% year over year. Investment income and net of related expenses increased 26.3% from the prior-year quarter to $1.1 billion. The average investment yield increased 23 basis points to 4.65%, primarily due to higher new money rates. Total benefits and expenses at Reinsurance Group climbed 18.5% year over year to $4.6 billion.
<a href="https://www.zacks.com/stock/news/2319430/manulife-mfc-q2-earnings-beat-estimates-nbv-sales-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2319430">To read this article on Zacks.com click here.</a>

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Shares of insurance companies are trading lower amid overall weakness following concerns for recently issued US economic data.

RBC Capital analyst Mark Dwelle maintains Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Outperform and raises the price target from $225 to $235.

RBC Capital Maintains Outperform on Reinsurance Gr, Raises Price Target to $235

JP Morgan analyst Jimmy Bhullar maintains Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Neutral and raises the price target from $208 to $220.

JP Morgan Maintains Neutral on Reinsurance Gr, Raises Price Target to $220

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Shares of companies within the broader financial sector are trading lower amid overall market weakness following weak US jobs data.

Reinsurance Gr's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) short percent of float has fallen 5.48% since its last report. The company recently reported that it has 351 thousand shares sold short, which is 0.69% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.15 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Reinsurance Gr Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1722606315_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Reinsurance Gr has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Reinsurance Gr's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Reinsurance Gr's peer group average for short interest as a percentage of float is 1.79%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About Reinsurance Gr?

Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) reported quarterly earnings of $5.48 per share which beat the analyst consensus estimate of $5.09 by 7.66 percent. The company reported quarterly sales of $4.88 billion which missed the analyst consensus estimate of $5.00 billion by 2.39 percent. This is a 17.37 percent increase over sales of $4.16 billion the same period last year.

Earnings Misses

Reinsurance Gr Q2 2024 Adj EPS $5.48 Beats $5.09 Estimate, Sales $4.88B Miss $5.00B Estimate

U.S. stock markets tumbled on Jul 24, following weaker-than-expected earnings results of a couple of so-called &quot;Magnificent 7&quot; stocks. The three major stock indexes &mdash; the Dow, the S&amp;P 500 and the Nasdaq Composite &mdash; plummeted 1.3% (504.22 points), 2.3% (128.61 points) and 3.6% (654.94 points), respectively. The S&amp;P 500 and the Nasdaq Composite posted their worst single-day performance since 2022.
Wall Street witnessed an impressive bull run in the past 19 months, barring some minor fluctuations. The rally was predominantly driven by big technology stocks, buoyed by the astonishing adoption of generative artificial intelligence globally. Consequently, several AI-centric stocks skyrocketed 200-300% during this period.
However, the situation started changing this month as investors&#39; preferences shifted from highly overvalued technology stocks to beaten-down rate-sensitive cyclical stocks. This happened after market participants&#39; expectations of two Fed rate cuts of 25 basis points this year jumped to more than 90%.
In addition, lower-than-expected earnings of AI-centric big tech stocks rattled investors&#39; sentiment on whether these companies will be able to deliver in the near future in order to support their overstretched valuations.&nbsp;
We believe, the market may remain volatile in the near future as a lot of big tech stocks are yet to report quarterly financial results. Any deviation from the market&#39;s expectations with respect to any metric (financial or operational) will result in volatility.
At this stage, investment in low-beta stocks with a high dividend yield and a favorable Zacks Rank may be the best option. If markets regain momentum, the favorable Zacks Rank of these stocks will capture the upside potential. However, if the downtrend continues, low-beta stocks will minimize portfolio losses and dividend payments will act as a regular income stream.&nbsp;
<h3>Our Top Picks</h3>
We have narrowed our search to five low-beta (beta &gt;0 &lt;1) stocks with a solid dividend yield. These companies have strong growth potential for the rest of 2024 and have seen positive earnings estimate revisions in the past 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy).
The chart below shows the price performance of our five picks year to date.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/02/72393.jpg?v=1035244647" style="border-style:solid; border-width:1px" />
Image Source: Zacks Investment Research
Interactive Brokers Group Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ibkr#NASDAQ">IBKR</a>) is a global automated electronic broker. IBKR&#39;s efforts to develop proprietary software, low compensation expenses relative to net revenues, an increase in emerging market customers and higher interest rates are expected to boost revenues in the upcoming quarters.&nbsp;
IBKR executes, processes and trades in cryptocurrencies too. The commodities futures trading desk of IBKR also offers customers a chance to trade cryptocurrency futures. We project total net revenues to witness a CAGR of 5.2% over the next three years. IBKR&#39;s enhanced capital distribution plans seem sustainable given a solid liquidity position.
Interactive Brokers Group has an expected revenue and earnings growth rate of 14.7% and 17.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 30 days. IBKR has a beta of 0.81 and a current dividend yield of 0.82%.
Reinsurance Group of America Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rga#NYSE">RGA</a>) steadily benefits from a mix of organic and transactional opportunities. RGA&#39;s niche position in reinsurance markets and expansion of international footprint are positives. Individual mortality has matured and provides a base for stable earnings.&nbsp;
Significant value embedded in the in-force business should generate predictable long-term earnings. RGA is poised to benefit from improving life reinsurance pricing environment and higher investment income. A solid solvency position reflects RGA&#39;s ability to make interest payments.
Reinsurance Group of America has an expected revenue and earnings growth rate of 13.4% and 6.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 30 days. RGA has a beta of 0.92 and a current dividend yield of 1.54%.
Packaging Corporation of America (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pkg#NYSE">PKG</a>) is poised well to gain from the strong growth in e-commerce activities that continue to support packaging demand. Stable demand for food, beverages, medication and other consumer products will help sustain the demand for the Packaging segment.
The conversion of the No. 3 paper machine at PKG&#39;s Jackson, AL-based mill to liner board through the past few years will enable the company to meet the increase in demand. PKG anticipates higher total corrugated product shipments in 2024.&nbsp;
Packaging Corporation of America has an expected revenue growth rate of 4.1% for the current year. Although its earnings growth rate is negative for the current year, it is 17.6% for next year. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the past seven days. PKG has a beta of 0.77 and a current dividend yield of 2.59%.
Franco-Nevada Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) is well-poised to deliver strong earnings growth, aided by increased contributions from its streaming agreements. Contributions from buyouts, and a healthy portfolio of royalty and streaming agreements will aid the company&#39;s growth. Even though FNV has been facing lower output due to the production halt in Cobre Panama, it is likely to be offset by FNV&#39;s continued focus on cost management.&nbsp;
FNV has a debt-free balance sheet and uses its free cash flow to expand the portfolio and pay dividends. Gold prices have been on an uptrend this year, aided by geopolitical reasons, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks.&nbsp;
Franco-Nevada has an expected revenue and earnings growth rate of 9.3% and 12%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 1.4% over the past seven days. FNV has a beta of 0.74 and a current dividend yield of 1.15%.
Fox Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fox#NASDAQ">FOX</a>) operates as a news, sports, and entertainment company in the United States. FOX operates through Cable Network Programming, Television, and Other, Corporate and Eliminations segments. The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution.&nbsp;
The U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and power broadcast television stations including digital platform. Other, Corporate and Eliminations segment comprises FOX Studio Lot which provides television and film production services including office space, studio operation services, and facility operations, and Credible, a U.S. consumer finance marketplace.
FOX has an expected revenue and earnings growth rate of 9.7% and 10.5%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 30 days. FOX has a beta of 0.82 and a current dividend yield of 1.51%.
<a href="https://www.zacks.com/stock/news/2308790/top-5-low-beta-high-yielding-stocks-to-shield-your-portfolio?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2308790">To read this article on Zacks.com click here.</a>

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Reinsurance Group of America shares are trading higher after Citigroup maintained a Buy rating on the stock and raised its price target from $194 to $252.

Citigroup analyst Michael Ward maintains Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Buy and raises the price target from $194 to $252.

Citigroup Maintains Buy on Reinsurance Gr, Raises Price Target to $252

Jefferies analyst Suneet Kamath maintains Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Buy and raises the price target from $63 to $64.

Jefferies Maintains Buy on Reinsurance Gr, Raises Price Target to $64

Morgan Stanley analyst Nigel Dally maintains Reinsurance Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>) with a Equal-Weight and raises the price target from $216 to $217.

Morgan Stanley Maintains Equal-Weight on Reinsurance Gr, Raises Price Target to $217

Sun Life Financial Inc.&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slf#NYSE">SLF</a>) strategic investments in Asia, strengthening asset management businesses, the scale-up of its U.S. operations and a strong financial position bode well for growth.
<h3>Growth Projections</h3>
The Zacks Consensus Estimate for Sun Life&#39;s 2024 earnings per share indicates an increase of 3.6% from the year-ago reported number. The consensus estimate for 2025 earnings per share and revenues indicates an increase of 8.9% and 4.9%, respectively, from the corresponding 2024 estimates.
<h3>Earnings Surprise History</h3>
Sun Life beat the Zacks Consensus Estimate for earnings in two of the last four quarters, met once and missed the other occasion, the average being 0.28%.
<h3>Zacks Rank &amp; Price Performance</h3>
Sun Life currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 2.7% against the industry&#39;s growth of 21.3%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/8c/70884.jpg?v=1113843695" />
Image Source: Zacks Investment Research
<h3>Business Tailwinds</h3>
Sun Life continues to focus on the emerging economies of Asia that are expected to provide higher returns and growth than the North American markets. SLF has a strong presence in China, Philippines, India, Hong Kong and Indonesia and has also forayed into Malaysia and Vietnam, taking the count to seven markets in which it has a presence. Contribution to Sun Life&#39;s earnings has increased to 21% from 8% over the last few years.
The third largest insurer in Canada is improving its business mix and is thus shifting its growth focus toward products that block lower capital and offer more predictable earnings. Sun Life looks to be one of the top five players and remains focused on growing its voluntary benefits business.
In its effort to strengthen Asset Management, Sun Life Investment Management makes investments in private fixed-income, mortgages and real estate. It invests in pension plans and other institutional investors. Notably, Asset Management provides a higher return on equity, lower capital and volatility and has the potential for an earnings upside.
Operational efficiency has been aiding Sun Life in building a strong capital position. The life insurer&#39;s capital outlay includes a 40-50% dividend payout over the medium term. Also, given the company&#39;s ongoing shift to fee-based capital-light businesses, it reiterated its medium-term ROE target of 18%.
<h3>Headwinds</h3>
However, expense increase at Sun Life over the past few years averaged 11% due to high employee expenses, premises and equipment, service fees, amortization of intangible assets and other expenses. The life insurer remains committed toward balancing both metrics, failing which, the bottom line might suffer. The company estimates integration activities to drive run-rate cost savings of $60 million by 2024.
<h3>Stocks to Consider</h3>
Some better-ranked stocks from the insurance industry are Reinsurance Group of America, Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rga#NYSE">RGA</a>), Baldwin Insurance Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bwin#NASDAQ">BWIN</a>) and NMI Holdings Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nmih#NASDAQ">NMIH</a>), each carrying a Zacks Rank #2 (Buy) at present.
Reinsurance Group&#39;s earnings surpassed estimates in each of the last four quarters, the average surprise being 19.48%. Over the past year, shares of RGA have jumped 33.6%. The Zacks Consensus Estimate for RGA&#39;s 2024 and 2025 revenues implies year-over-year growth of 5.3% and 4.8%, respectively.
Baldwin Insurance&#39;s earnings surpassed estimates in three of the last four quarters and matched in one, the average surprise being 11.12%. Over the past year, shares of BWIN have jumped 33.6%. The Zacks Consensus Estimate for BWIN&#39;s 2024 and 2025 revenues implies year-over-year growth of 39.2% and 30.7%, respectively.
NMI Holdings&#39; earnings surpassed estimates in each of the last four quarters, the average surprise being 8.60%. Over the past year, shares of NMIH have jumped 33.6%. The Zacks Consensus Estimate for NMIH&#39;s 2024 and 2025 revenues implies year-over-year growth of 10.6% and 7.6%, respectively.
<a href="https://www.zacks.com/stock/news/2299108/reasons-why-investors-should-retain-sun-life-slf-stock-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2299108">To read this article on Zacks.com click here.</a>

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Reasons Why Investors Should Retain Sun Life Stock Now

Trupanion, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/trup#NASDAQ">TRUP</a>) has been benefiting from a focus on pet health and well-being in an underpenetrated pet insurance market, product launches, extended operating boundaries, as well as sufficient liquidity.
<h3>Growth Projections</h3>
The Zacks Consensus Estimate for Trupanion&#39;s 2024 earnings per share indicates an increase of 57.4% from the year-ago reported number. The consensus estimate for revenues is pegged at $1.26 billion, implying a year-over-year improvement of 13.7%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 95.4% and 6.5%, respectively, from the corresponding 2024 estimates.
The expected long-term earnings growth rate is 39.3% compared with the industry average of 17.1%.
<h3>Zacks Rank &amp; Price Performance</h3>
Trupanion currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 4.9% compared with the industry&#39;s growth of 21.6%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/83/70558.jpg?v=221438358" /> 
Image Source: Zacks Investment Research
<h3>Earnings Surprise History</h3>
Trupanion has a decent earnings surprise history. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 43.13%.
<h3>Business Tailwinds</h3>
This provider of insurance for cats and dogs operates in a large but underpenetrated market. Management noted that less than 5% of the pets are insured in North America and a very low number across most of Europe. There is immense scope as there has been a change in the attitude of pet owners, who are increasingly focusing on pet health and well-being. TRUP is well poised for growth in a total addressable market worth $34.1 billion.&nbsp; The insurer envisions doubling its addressable market (defined by the number of veterinary hospitals) by the end of 2030.
Average monthly retention continues to be strong, ensuring uninterrupted revenue generation.&nbsp; The insurer has also been expanding globally as part of its five-year growth plan, apart from strengthening its compelling portfolio. TRUP noticed increasing contributions from European endeavors, which added about 14,400 new pets during 2023.
Its focus on introducing products bodes well for growth. Its portfolio of products comprising Chewy and Aflac, medium and low average monthly revenue per unit products Firkin and Phi Direct and products in continental Europe contributed 22% to gross new pet adds in the first quarter of 2024.
Over the long term, TRUP remains focused on growing adjusted operating income and deploying increasing amounts at high internal rates of return. The pet insurer&#39;s five-year plan includes a 15% adjusted operating margin.
TRUP projects revenues in the range of $1.2 billion to $1.3 billion, up 14% from the 2023 level. Subscription revenues are projected between $842 million and $862 million, up 20% from 2023. Total adjusted operating income is now expected to be in the range of $100 million to $120 million, up 32% year over year.
A solid balance sheet supports investment in new product development and international expansion. Trupanion expects these investments to expand the addressable market in the long run.
TRUP has a Growth Score of A. This style score helps analyze the growth prospects of a company.
<h3>Headwinds</h3>
However, Trupanion has been incurring higher expenses over the last several years, attributable to an increase in technology and development, general and administrative, new pet acquisition expenses, depreciation and amortization. The insurer must strive to generate revenue growth higher than the rise in the magnitude of expense, or else the margin will continue to erode.
<h3>Stocks to Consider</h3>
Some better-ranked stocks from the insurance industry are Reinsurance Group of America, Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rga#NYSE">RGA</a>), RLI Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rli#NYSE">RLI</a>) and NMI Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nmih#NASDAQ">NMIH</a>), each carrying a Zacks Rank #2 (Buy) at present.
Reinsurance Group has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 19.48%. In the past year, shares of RGA have jumped 43.1%.The Zacks Consensus Estimate for RGA&#39;s 2024 and 2025 earnings implies year-over-year growth of 5.3% and 4.9%, respectively.
RLI&#39;s earnings surpassed estimates in three of the last four quarters and missed in one, the average surprise being 132.39%. In the past year, shares of RLI have gained 1.9%.The Zacks Consensus Estimate for RLI&#39;s 2024 and 2025 revenues implies year-over-year growth of 18.4% and 3.8%, respectively.
NMI Holdings&#39; earnings surpassed estimates in each of the last four quarters, the average surprise being 8.60%. In the past year, shares of NMIH have jumped 32.5%.The Zacks Consensus Estimate for NMIH&#39;s 2024 and 2025 revenues implies year-over-year growth of 10.6% and 7.6%, respectively.
<a href="https://www.zacks.com/stock/news/2297554/should-you-retain-trupanion-trup-stock-in-your-portfolio?cid=CS-BENZ-FT-analyst_blog|rank_focused-2297554">To read this article on Zacks.com click here.</a>

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TRUP

Should You Retain Trupanion Stock in Your Portfolio?

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Morgan Stanley analyst Bob Huang maintained a Hold rating on Reinsurance Group (RGA – Research Report) today and set a price target of $236.00. The...

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Reinsurance Gr (RGA) Forecast

Reinsurance Gr (NYSE:RGA) Stock, Quote.Headers.trade-ideas