Monday's IBD 50 Stocks To Watch pick, insurance leader Kinsale Capital, is within striking distance of its latest buy point, while an additional entry also looms. KNSL stock is one of the best stocks to buy and watch in today's stock market.
Kinsale Capital provides casualty, specialty casualty, property, professional line and transportation insurance products. Its casualty insurance covers everything from the cannabis to construction industries.
The specialty casualty unit handles the energy, entertainment, environmental and life sciences industries, and product recall and product liability.
Its professional line segment oversees health and public entities and professional liability coverage, while its transportation unit insures the aviation, auto and marine businesses.
On April 27, Kinsale reported better-than-expected Q1 earnings and sales. The company earned $2.44 per share, a 50% year-over-year jump. Kinsale reported record first-quarter revenue of $357.6 million, up 46% vs. the year-ago period.
"These favorable results are being driven by the Kinsale business strategy of disciplined E&S (excess and surplus) underwriting and technology-enabled low costs, which allow us to generate attractive returns and to take market share from competitors at the same time," said CEO Michael Kehoe in the earnings call.
Kinsale Stock Boasts Strong IBD Ratings
With a stellar long-term earnings track record, Kinsale stock has a best-possible 99 Earnings Per Share Rating, according to IBD Stock Checkup. This metric takes into account growth and stability of earnings over the past three years, with the two most recent quarters weighed more heavily.
Kinsale boasts a three-year EPS growth rate of 56%, complemented by 41% revenue growth over the same period.
The company is on track for big profits in 2023. Earnings are set to jump 32% to $10.30 per share, according to FactSet estimates. Annual earnings are forecast to grow an additional 18% in 2024.
Finally, KNLS stock shows a perfect 99 IBD Composite Rating, making it one of the best stocks to buy and watch in today's stock market.
KNSL Is One Of The Best Stocks To Buy And Watch
Kinsale stock slipped 0.4% midday Monday, holding about 2% below a 337.22 buy point in a cup base, according to IBD MarketSmith, after an April 24 breakout attempt. If the top stock reclaims the buy point, the 5% buy zone will extend to 354.08.
Bullishly, the stock's relative strength line is nearing new highs amid strong stock gains since early April. A strong RS line reiterates that Kinsale is one of the best stocks to buy and watch. The RS line measures a stock's price performance vs. the S&P 500.
With the stock market trend back in a confirmed uptrend, investors should be on the lookout for top stocks breaking out past buy points. Despite the acknowledgment of better action in recent sessions, IBD's recommended exposure in stocks remains at 20% to 40% of your portfolio due to the ongoing volatility.
Best Stocks To Buy And Watch
These are three recent IBD 50 Stocks To Watch picks.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Celsius | 122.34 | Cup base | |
| Hyatt | 118.02 | Cup with handle | |
| Uber Technologies | 37.68 | Cup base |
Source: IBD Data As Of May 15, 2023
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
