Insurers are banking profits as more people and businesses choose to add coverage. As a result, property and casualty insurer RenaissanceRe Holdings reported profit gains ranging from 60% to 190% over the past four quarters. Additionally, it's raised its quarterly dividend on an annual basis for 29 years, since the company went public.
On Wednesday, the IBD Relative Strength Rating for RenaissanceRe stock shot up to a new percentile, with an increase from 79 to 82.
RenaissanceRe Stock Joins Elite Group
The upgraded 82 Relative Strength Rating pushes watchlist candidate RenaissanceRe stock into a high-performance group. Decades of market research reveals that the market's biggest winners typically have an 80 or higher RS Rating in the early stages of their moves.
Hone Your Stock-Picking Skills By Focusing On These Factors
RenaissanceRe stock broke out last month, dipped below the 235.14 entry from a flat base, then rose above it to an all-time intraday high 239.42 on March 15. On Wednesday it closed at 236.06. One thing to consider is that its latest consolidation is a later-stage base, and such bases can succeed but are less likely to do so than first and second stage bases.
Fundamentals Strong
Regarding fundamentals, Bermuda-based RenaissanceRe saw both earnings and sales grow at a good clip last quarter. Earnings per share zoomed 61% to $11.77 on a 60% jump in revenue to $3.24 billion. The prior three quarters its earnings grew 133%, 60% and 190%. Revenue during that period rose 152%, 114% and 43%.
RenaissanceRe stock earns the No. 16 rank among its peers in the 61-stock Insurance-Property/Casualty/Title industry group. Assured Guaranty, HCI Group and Mercury General are among the top 5 highly rated stocks in the group. The group itself ranks a strong No. 29 on IBD's list of 197 industry groups.
Investor's Business Daily's unique Relative Strength Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
RELATED:
Get Full Access To IBD Stock Lists And Ratings
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
