Insurance stocks remain some of the top names in the IBD 50. Leading insurance broker Ryan Specialty Holdings is Wednesday's pick for IBD 50 Growth Stocks To Watch as Ryan stock sits in a buy zone and climbs back near a high.
Ryan Specialty is on the trifecta of Investor's Business Daily's winning lists: the IBD 50, MarketSurge Growth 250 and Big Cap 20. It is a wholesale insurance broker and managing underwriter that offers specialty coverage and wholesale products to insurance brokers, agents and carriers.
Its wholesale brokerage, RT Specialty, offers specialty property, casualty, professional lines and workers' compensation insurance products.
Ryan stock ranks No. 1 out of 16 stocks in the Insurance-Brokers group, which holds the 30th spot out of the 197 industry groups tracked by IBD.
The group holds an 85 IBD Relative Strength Rating. And the group's relative strength line is climbing back from January lows as some investors turned to more defensive groups including insurance and related stocks.
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Ryan Stock Ripe For The Picking
Ryan stock is solidly in a 5% buy zone up to 74.90 from a cup-with-handle base with a 71.33 entry point, according to MarketSurge pattern recognition. Be sure to read the IBD Big Picture column for a current recommended market exposure level.
Shares are heading back to their all-time high reached in late November. Ryan stock has climbed around 13% so far this year and far outpaced the S&P 500's negative 2%.
Its 10-week moving average and relative strength line are both trending upward, which are positive signs for the insurance broker stock.
Insurance Broker's Profit Growth Looks To Continue
For the fourth quarter, the firm reported in-line profit and higher sales on Feb. 20. Its earnings growth has averaged around 30% over the last six quarters. And its profit growth is expected to accelerate from 12% to 21% over the next four quarters.
Further, Ryan's revenue growth has averaged more than 20% over the last eight quarters.
Full-year 2025 profit estimates call for 18% growth then ramp up to 22% in 2026. Its IBD Earnings Per Share Rating is 97 out of best-possible 99.
Big money managers are backing Ryan stock. Its Accumulation/Distribution Rating of A- indicates fairly heavy institutional buying over the last 13 weeks. And its 1.3 up/down volume ratio shows positive demand over the last 50 days.
Mutual funds own 61% of Ryan stock, with 490 owning shares in December, up from 472 in September and 430 in June. In addition, banks own 2% while management holds a beefy 14% of shares, showing conviction in the stock.
Lastly, Ryan stock holds a coveted 99 Composite Rating.
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