Like its bigger sibling Berkshire Hathaway Reinsurance, RenaissanceRe offers risk coverage for insurance firms. And also like Berkshire Hathaway, Renaissance Re trades near an all-time high. On Friday, the Relative Strength (RS) Rating for Renaissance Re stock shot up 11 points, from 66 to 77.
Renaissance Re Stock Among Top 8%
The upgraded 77 RS Rating shows that Renaissance Re stock outperformed 77% of all stocks, regardless of industry, over the past 12 months. But that one rating doesn't tell the whole story. The Bermuda-based reinsurance company boasts a strong 92 Composite Rating.
IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better. Its Earnings Per Share Rating is a milder but still decent 79. Look for that to rise based on its recent strong profit growth.
It has a so-so D Accumulation/Distribution Rating, showing that big funds are selling a bit more shares than buying. But there is certainly interest there. The number of funds holding Renaissance Re stock rose from 761 in the December-ended quarter to 790 in March and 819 in June, a bullish sign.
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Double, Triple-Digit Profit Growth Recently
Where the company really shines is its fundamentals. The company reversed from a loss in the September-ended quarter to report 56% EPS growth in December. It followed up with a 133% surge in EPS in March and posted 60% growth last quarter, to a hefty $8.79 per share. Revenue growth has followed a similar trajectory and popped 114% last quarter to $1.853 billion.
Renaissance Re stock is working on a consolidation with a 223.80 entry. See if the stock can break out in volume at least 40% higher than normal. On Friday, RNR stock was up in afternoon trading, working on its fourth higher close in the last five trading sessions.
Renaissance Re stock earns the No. 10 rank among its peers in the Insurance-Property/Casualty/Title industry group. Greenlight Re, which operates in the Cayman Islands, Ireland and the U.K., is No. 2 in the group. And recent IPO stock Fidelis Insurance is No. 1 among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one indicator to keep a close on eye on is relative price strength.
IBD's proprietary RS Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
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