Here's Why RenaissanceRe (RNR) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
RenaissanceRe (RNR)
Founded in 1993 and based in Pembroke, Bermuda, RenaissanceRe Holdings Ltd. primarily provides property-catastrophe reinsurance to insurers and reinsurers globally on the basis of excess of loss (coverage of losses over a specified limit). Additionally, RenaissanceRe provides certain specialty reinsurance coverage on accident, health, aviation and satellite concerns, as well as homeowners' insurance in various parts of the U.S. The company also writes specialty and catastrophe reinsurance through two joint ventures, Top Layer Re and Reinsurance, and through certain specialty reinsurance and primary insurance lines.
RNR is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 6.8X for the current fiscal year compared to the Insurance - Property and Casualty industry's P/E of 13.7X. Additionally, RNR has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 8X. Value investors should also note RNR's Price/Sales ratio of 1.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, six analysts revised their earnings estimate higher in the last 60 days for RNR, while the Zacks Consensus Estimate has increased $2.19 to $39.01 per share. RNR also holds an average earnings surprise of 27.4%.
Investors should take the time to consider RNR for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report