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Valued at a market cap of $10.3 billion, Assurant, Inc. (AIZ) provides risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy. The Atlanta, Georgia-based company offers a diverse set of specialty, niche-market insurance products in the property, extended device protection, and automotive sectors.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Assurant fits this criterion perfectly. The company operates in 21 countries and helps businesses manage the risks of property damage, liability, financial loss, theft, and natural disasters with the help of its over 13,000 employees and a wide range of specialty insurance products.
Despite a slight pullback from its 52-week high of $200 reached recently on Sep. 26, shares of this insurance company have gained 18.8% over the past three months, surpassing the broader Nasdaq Composite’s ($NASX) 2% return over the same time frame.
However, in the longer term, AIZ stock is up nearly 18% on a YTD basis, lagging behind NASX’s 21.4% gains. Moreover, shares of AIZ have gained 36.3% over the past 52 weeks, underperforming NASX’s 39.2% returns over the same time frame.
AIZ has been trading above its 200-day and 50-day moving average since mid-July, despite slight fluctuations, indicating a bullish trend.
Shares of AIZ rose marginally after its Q2 earnings release on Aug. 6 as its revenues of $2.94 billion and earnings of $4.08 per share surpassed the Wall Street estimates while increasing annually. The outperformance was primarily driven by an increase in net earned premiums, fees, and other income, fueled by solid growth across both of its segments. The company’s raised full-year 2024 guidance further bolstered investor confidence.
AIZ has outperformed its rival Assured Guaranty Ltd. (AGO), which gained 31.1% over the past 52 weeks and 7.6% on a YTD basis.
Despite AIZ’s underperformance relative to the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from seven analysts in coverage, and the mean price target of $213.20 suggests a premium of just 7.1% to its current levels.
On the date of publication, Sohini Mondal 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.
