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Headquartered in Atlanta, Georgia, Assurant, Inc. (AIZ) is a global provider of risk management solutions with a market cap of $9.86 billion. Specializing in housing, lifestyle, and financial services, Assurant supports various industries, including insurance, mobile device protection, and extended service contracts. The company’s comprehensive suite of services and solutions helps safeguard customers’ assets, manage risk, and enhance financial security, addressing the evolving needs of its diverse global clientele.
AIZ has significantly outperformed the broader market over the last year. The stock has gained 38.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. However, in 2024, the stock has gained 14.6%, compared to SPX's 18.1% gains on a YTD basis.
Narrowing the focus, AIZ has lagged behind the SPDR S&P Insurance ETF (KIE). The exchange-traded fund has gained about 32% over the past year. However, the ETF’s 21.9% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Aug. 6, AIZ reported its Q2 results. Revenue and EPS for the period were $2.94 billion and $4.08, exceeding analysts' forecasts of $2.87 billion and $3.58, respectively. The stock gained marginally on the day of the earnings release.
For the current fiscal year, ending in December, analysts expect AIZ’s EPS to grow 6.8% to $16.54 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in the last four quarters.
Among the seven analysts covering AIZ stock, the consensus rating is a “Moderate Buy,” slightly less bullish than “Strong Buy” three months ago. That’s based on four “Strong Buy” ratings and three “Holds.”
On Aug. 7, Piper Sandler analyst John Barnidge maintained a “Buy” rating on Assurant, with a price target of $205, which indicates a 6.2% upside from the current levels.
The mean price target of $211.80 represents a 9.7% premium to AIZ’s current price levels. The Street-high price target of $228 suggests an upside potential of 18.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
