Ryan Specialty Holdings stock is Tuesday's IBD 50 Growth Stocks To Watch pick as the insurance stock broke out of a flat base and reached a buy point on a weekly chart. The stock hit a new high as earnings loom.
Ryan Specialty Holdings is a wholesale broker and managing underwriter. It provides specialty distribution, underwriting, product development and risk management services to insurance brokers, agents and carriers.
Ryan stock is ranked No. 1 out of 16 stocks in the Insurance-Brokers group, which holds the No. 63 spot out of Investor's Business Daily's 197 industry groups.
Ryan Stock In Buy Zone
Ryan stock popped more than 3% Tuesday in heavy volume and broke out of a newly forming stage one flat base with a 61.29 buy point. The base appears on the IBD MarketSurge weekly chart, which puts the stock in a 5% buy zone up to 64.35.
The stock is on its sixth base since it went public on the New York Stock Exchange in July 2021, at 23.50 per share.
Ryan broke out of a cup-with-handle base with a 56 buy point in early June, but the breakout didn't progress. The stock pulled back to its 50-day moving average then advanced for five days in explosive action in heavy volume.
Shares gapped up 7.6% June 21 in heavy trading. The move came after it was announced that Ryan stock would be added to the S&P MidCap 400 effective prior to the opening of trading on June 28. Shares climbed two more days before a downside reversal on June 25. The drop was the beginning of the new flat base.
Shares got a 2.5% lift on July 23 after Citigroup raised its price target to 62 from 56 and held its neutral rating on the stock. The insurance stock has climbed 39% so far this year.
Earnings Results In Two Days
Ryan Specialty reports second-quarter earnings results Thursday after the market close. Analysts estimate second-quarter profit to grow 25% on 19% sales growth.
Quarterly forecasts show consistent earnings growth in the 26% to 28% range over the following three periods. Sales growth projections range from 16% to 18% over the same time frame. Meanwhile, analysts see full-year 2024 profit rising 27% then 21% in 2025.
Ryan reported in-line adjusted earnings and higher sales than estimates for the first quarter on May 2. Profit rose 35% on 21% revenue growth.
Ryan Specialty stock boasts a best-possible 99 IBD Composite Rating. Its B+ Accumulation/Distribution Rating indicates fairly heavy institutional buying over the last 13 weeks. In addition, management own 14% of shares while mutual funds hold 63% of shares, further supporting big money manager and leadership conviction in the stock.
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