As growth stocks like Nvidia and Alphabet struggle in a market correction, insurance stocks have come into focus on Wall Street. Seven companies from the insurance sector have swarmed onto the IBD Breakout Stocks Index, including Ryan Specialty.
Allstate, Aon, W.R. Berkley, Chubb, Brown & Brown and Hartford Insurance Group join Ryan Specialty stock among this barrage of insurance industry leaders in or near a buy zone. Only Ryan earns "perfect" status, however, scoring the highest-possible 99 Composite Rating.
Top Funds Bet On Ryan Specialty And Insurance Peers
Based in Chicago, Ryan Specialty provides specialty solutions for insurance brokers, agents and carriers. Its business includes distribution, underwriting, product development, administration and risk management services. Further, Ryan acts as a wholesale broker and a managing underwriter with delegated authority from insurance carriers.
The company was founded in 2010 by Patrick G. Ryan, the founder and former chairman and chief executive of Aon Corporation.
Attracted by strong and steady earnings and sales growth, Ryan Specialty joined a cadre of insurance stocks on the latest list of new buys by the best mutual funds. In addition to fellow IBD Breakout Stocks Index members Aon and Brown & Brown, Arthur J. Gallagher and Skyward Specialty Insurance also were among a total of 10 stocks from the insurance sector that made the list.
Over the last eight quarters, Ryan Specialty has posted sales growth ranging from 18% to 25%. Bottom-line gains have ranged from 8% to 35% over the same period. In its most recent report on Feb. 20, the insurer also generated revenue growth of 25% to $663.5 million and earnings growth of 29% to 45 cents per share.
Ryan Specialty — the March 12 IBD Stock Of The Day — has posted three quarters of rising fund ownership and sports an A Accumulation/Distribution Rating.
See Who Joins Ryan Specialty On The IBD Breakout Stocks Index
Ryan Specialty Stock Teases Breakout
As fellow insurance stocks like Allstate, W.R. Berkley and Monday's Stock Of The Day Hartford Insurance test new buy zones, Ryan Specialty stock also continues to tease a breakout of its own.
Shares of Ryan continue to nip at a 71.33 buy point in a cup with handle.
In addition to its spiking relative strength line, another positive is how Ryan recently reset its base count by undercutting the low in its prior chart pattern. That makes the current cup with handle a first-stage base. Such early stage formations have a higher likelihood of success compared to late-stage patterns.
In February, Ryan Specialty stock flashed improving technical strength when its 21-day exponential moving average climbed back above its 50-day line. Bolstering that move, Ryan has continued to hold support at the 21-day benchmark.
While insurance stocks like Ryan Specialty provide a bright spot in a troubled market, investors should heed the principles of risk management, which call for caution when making any new buys in this environment.
View More Insurance Stocks To Watch
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
