When analysts weigh in on a stock and see rising profits for the company, that sweetens the deal for investors looking for shares to buy. The IBD Stock Screener shows Allstate and Arch Capital are two insurance stocks near buy points with earnings on the upswing.
Arch Capital is in a buy zone from a cup with handle's entry of 88.77, according to IBD MarketSurge's pattern recognition tools. The early-stage base can lead to higher gains. But the stock also traded tightly for four weeks in the handle and is above a buy zone from an entry at 88.90. On Friday, shares rose in the strongest volume since the base was formed, hitting an all-time high of 92.01.
Arch Capital has a stellar Composite Rating of 98 and EPS Rating of 96. The Relative Strength Rating is adequate at 87. Sales and earnings have grown over the past five quarters. Sales grew 29% to $3.9 billion while earnings per share of $2.49 represented 16% growth. Mutual funds own 59% of shares outstanding.
More funds have been buying shares of Arch Capital over the past seven quarters. The leader among insurance stocks also shows that it is under accumulation in recent weeks and holds an Accumulation/Distribution Rating of B-. Arch Capital provides specialty insurance and reinsurance.
Allstate Stock: Setting Up In A Flat Base
Allstate is setting up in a flat base with a buy point of 168.05, which is also the stock's all-time high.
The insurer has a Composite Rating of 95 and EPS Rating of 81. The Relative Strength Rating is also strong at 91. Earnings in the two most recent quarters showed the company bounced back from losses in the prior five quarters.
Sales grew 9% to $14.8 billion. Earnings per share of $5.82 swung from a loss of $1.33 in the prior year. Strong interest from funds in recent weeks has given the stock an Accumulation/Distribution Rating of B-. Mutual funds own 47% of outstanding shares of Allstate stock.
Allstate provides property, casualty and life insurance products.
Also in property and casualty insurance, Skyward Specialty is just above a buy zone from a buy point of 34.53. The stock is also one that stands to benefit from rising profit estimates.
