Bowhead Specialty Holdings Inc. (BOW) shares rallied 6.2% in the last trading session to close at $25.27. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 25.8% loss over the past four weeks.
Bowhead Specialty is poised to grow on increasing renewal book and the continued growth in the platform across all four divisions. Higher average balance of investments and higher yields on invested assets also contributed to improved net investment income. A decrease in the operating expenses ratio and an increase in other insurance-related income contribute to the lowering of the expense ratio.
This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +5.3%. Revenues are expected to be $143.04 million, up 22.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Bowhead Specialty Holdings Inc., the consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BOW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Bowhead Specialty Holdings Inc. is part of the Zacks Insurance - Property and Casualty industry. ProAssurance (PRA), another stock in the same industry, closed the last trading session 0.7% higher at $24.16. PRA has returned 1% in the past month.
ProAssurance's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.28. Compared to the company's year-ago EPS, this represents a change of -17.7%. ProAssurance currently boasts a Zacks Rank of #2 (Buy).
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Bowhead Specialty Holdings Inc. (BOW): Free Stock Analysis Report ProAssurance Corporation (PRA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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