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Based in Hamilton, Bermuda, Everest Group, Ltd. (EG) is a leading provider of insurance and reinsurance solutions. Valued at a market cap of $15.3 billion, Everest offers a broad range of property and casualty insurance, specialty insurance, and reinsurance services across various industries worldwide.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Everest Group is a prime example of this, underscoring its substantial scale, financial strength, and influence within the global insurance and reinsurance markets. It stands out for its deep expertise in IT and business services, alongside its strong global presence. The firm is recognized for its data-driven insights, comprehensive research capabilities, and ability to deliver actionable strategies across various industries.
EG shares are trading 12.4% below their 52-week high of $407.30, which they hit on Oct. 4. However, the stock has dipped 8% over the past three months, underperforming the S&P 500 Index’s ($SPX) 4% returns over the same time frame.
In the longer term, EG is up marginally on a YTD basis. However, the shares have declined marginally over the past 52 weeks. In contrast, SPX has gained 24.3% in 2024 and 26.2% over the past year.
EG has encountered quite volatility this year and has been trading below its 50-day and 200-day moving averages since early December, which indicates a recent bearish trend.
Everest Group's Q3 earnings report, released on Oct. 30, presented a mixed outlook, leading to a sharp 6.4% decline in its share price during the subsequent trading session. Its revenue rose 13% year-over-year to $4.3 billion but missed Wall Street’s $4.5 billion forecast. On the brighter side, EPS climbed 3.3% annually to $14.62, outpacing estimates by an impressive 22.6% margin.
Highlighting the contrast in performance, rival AXIS Capital Holdings Limited (AXS) has outperformed EG with a 62.6% gain on a YTD basis.
Despite EG's recent underperformance compared to its sector, analysts are moderately bullish about its prospects. The stock has a consensus rating of "Moderate Buy" from 14 analysts in coverage. The mean price target is $422.23, suggesting an 18.4% premium to its current price levels.
