Ryan Specialty is the IBD Stock Of The Day as it tries to break out to fresh highs. RYAN stock briefly offered an early entry as it broke a downtrend from a September interim high.
The provider of specialty products and solutions for insurance brokers and agents boasts robust, double-digit earnings and revenue growth. A leading excess and surplus (E&S) insurance company, Ryan has expanded through strategic acquisitions and organic growth.
Financial and insurance stocks tend to benefit as interest rates rise. But they can also benefit from falling rates. As the Fed starts to cut rates, lending and refinancing may perk up. These companies may also be able to borrow more money at lower rates.
RYAN Stock Flirts With Buy Point
Shares popped 2.7% to 68.20 on the stock market today in above-average volume. RYAN stock briefly topped a 69.03 buy point from a cup-shaped base on Tuesday. The insurance stock is trading just above an early, not-quite-handle entry of 68.47, which marks the Sept. 24 interim high.
Aggressive traders could have bought Ryan Specialty as it broke the downtrend of the quasi-handle.
Shares found support at the 10-week moving average in late September.
Ryan Specialty insurance stock remains above all the short- and long-term support levels, including the 21-day exponential moving average. It has been riding those levels since the cup base began to form nine weeks ago.
The relative strength line for RYAN stock has bolted higher this year, though it's still below the peak of the latest cup base. A rising RS line, the blue line in the chart shown, means that a stock is outperforming the S&P 500 index.
Among favorable technical signs, RYAN stock shows an up/down volume ratio of 1.4. Ratings above 1 indicate upward price pressure on a stock.
RYAN stock bears a superior Accumulation/Distribution Rating of A. The number of funds owning shares rose 14% in the latest June-ended quarter, a favorable sign, according to IBD Stock Checkup.
This insurance play shows an 89 Relative Strength Rating out of a best-possible 99, up from 85 one week ago. The RS Rating means that Ryan Specialty has outperformed 89% of all stocks in IBD's database over the past year.
Founded in 2010, the Chicago-based company went public in July 2021. Year to date, RYAN stock has surged nearly 59%. That includes a 7.5% earnings breakaway gap on Feb. 28 and a nearly 10% earnings surge to record highs on Aug. 2.
Ryan Specialty Earnings
The stock boasts a perfect Composite Rating of 99. The Composite Rating combines various technical and fundamental metrics into one easy-to-read score. Further, Ryan bears a near-perfect 98 EPS Rating.
The insurance company has delivered an unbroken string of quarterly earnings beats stretching back to the December 2022 period, according to FactSet. Earnings growth ranged from 28% to nearly 35% the last four quarters in a row. Ryan Specialty rang in sales growth of almost 19% to 23% over this same period. However, growth decelerated on both the top and bottom lines in the quarter ended June 30.
For the full year, analysts expect a 30.5% leap in earnings per share, slowing to a 22.4% gain in 2025.
Amid a leadership reshuffle, Tim Turner took the helm as CEO on Tuesday. He succeeded founder Patrick Ryan, who has moved to an executive chairman role.
Analysts on Wall Street remain on the sidelines regarding this specialty insurance play, FactSet shows. The consensus rating for RYAN stock is hold with a price target of 66.64, below where shares traded Tuesday.
