Insurance stocks have outperformed the S&P 500 in recent months. The insurance brokers group has gained 16% in 2024, with leading stocks like Ryan Specialty Holdings making even bigger gains. The company is today's selection for IBD 50 Stocks to Watch
The growth stock is nearing the top of a cup-without-handle base and a buy point of 56.52, according to IBD MarketSurge. It is part of an early-stage set of bases going back to August 2022.
Ryan Specialty Holdings provides specialty property and casualty insurance The company went public on the New York Stock Exchange in July 2021 at 23.50 a share.
As it is with most insurers, sales growth has been steady, ranging between 17% and 26% over the past eight quarters. In the most recent quarter, sales grew 21% to $552.1 million while earnings of 35 cents per share were 35% higher than the prior year.
Earnings growth has accelerated, going from 8% to 15%, 28%, 30% and 35% the past five quarters.
Funds Hold 66% Of Growth Stock
Mutual funds own 66% of shares outstanding. More funds have been net buyers in recent weeks, going by the stock's Accumulation/Distribution Rating of B. The Columbia Acorn Fund (ACRNX) and the Artisan MidCap Fund (ARTMX) hold shares of the growth stock.
Ryan Holdings also holds near ideal Composite and EPS Ratings of 97. The Relative Strength Rating is an adequate 85.
The stock leads the insurance brokers group. Year to date, the stock has gained 29% vs. the S&P 500's gain of about 11% gains. Since it went public, the stock has risen over 130% from its IPO price.
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