Here's Why AXIS Capital (AXS) Stock Is An Attractive Bet
Zacks Investment Research | Mar 15, 2020 09:40PM ET
AXIS Capital Holdings Limited (NYSE:AXS) remains well poised for growth on improved investment income, advanced pricing momentum and prudent capital deployment.
The company has a decent earnings surprise history. It beat estimates in two of the last four quarters, with the beat being 53.46%, on average.
What Makes It an Attractive Pick?
AXIS Capital aims to boost business growth with the use of expanding digital capabilities. With advanced pricing momentum, favorable market conditions are expected to drive business and provide opportunities to leverage its market position and generate profitable growth.
The Zacks Rank #2 (Buy) property and casualty insurer witnessed improved investment income, which increased 9.1% in 2019 from the figure reported in 2018. Solid net investment income can be attributed to higher income from fixed maturities, driven by yields and larger allocation of the portfolio to fixed maturities, along with a realized gain associated with the sale of a privately held investment.
AXIS Capital has a solid capital management policy in place with regular dividend hikes and share buybacks. With a 2.4% hike in its quarterly common share dividend in the fourth quarter of 2019, the company made 14 consecutive dividend raises on the back of solid earnings. Its dividend currently yields 3.8%, better than the industry average of 0.5%, making it an attractive pick for yield-seeking investors.
Estimates for AXIS Capital have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2020 earnings per share has moved nearly 2.6% north while that for 2021 has moved up 11.2% in the said time frame.
Shares of AXIS Capital have lost 23.9% in the past year, compared with the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.