W.R. Berkley stock bucked the market trend and shot up 7.5% to an all-time high Friday on earnings. The Greenwich, Conn.-based insurer stingily dipped about 1% Monday, giving back just a small part of that as the market correction continues. Also on Monday, the Relative Strength (RS) Rating for Berkley stock climbed from 88 to a superb 93.
Berkley Among Top 7% Of All Stocks
The upgraded 93 RS Rating shows that W.R. Berkley outpaced 93% of all stocks for price performance this past year. It's a notable achievement because market research shows the market's biggest winners tend to have an RS Rating north of 80 in the early stages of their moves.
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Berkley's other ratings are also excellent. It holds a near-best 98 Composite Rating and a best A SMR Rating (sales + profit margin + return on equity). It also boasts a B+ Accumulation/Distribution Rating. The B+ A/D Rating shows that funds are fairly heavy buyers of its stock.
Stocks of insurance companies and gold miners have been hot lately as investors seek shelter from the market correction.
Berkley notes on its website that is "has built close to 60 successful insurance businesses" to help independent agents and brokers deliver commercial and high net-worth personal insurance products tailored for each industry, product and region.
WRB stock formed a series of bases since it dropped to a 19.13 low in late March 2020 during the Covid market crash. The IBD 50 stock has moved more than 5% past a 63.98 entry in a second-stage cup with handle. Monday afternoon the insurer traded above 70, down fractionally for the day.
Profit, Sales Surge For Highly Rated Insurer
Berkley last Thursday reported fourth quarter earnings grew 16% to $1.13 per share, on a 14% rise in revenue to $3.67 billion. Its quarterly revenue growth was the biggest in a year.
W.R. Berkley holds the No. 4 rank among its peers in the 60-stock Insurance-Property/Casualty/Title industry group. Goosehead Insurance is the top-ranked stock in the group. The group itself boasts a top-notch A+ Relative Strength Rating.
IBD's unique Relative Strength Rating tracks share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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