For Immediate Release
Chicago, IL – November 06, 2013 – Stocks featured in this week’s Zacks Industry Rank analysis include Kemper Corporation ( KMPR- Free Report) and Old Republic International Corp ( ORI- Free Report).
Zacks Industry Rank Analysis is written by John Blank, PhD, Chief Equity Strategist, Zacks.com.
Premium Returns in the Insurance Sector
You have to tip your hat to advertisers responsible for insurance commercials. Of all the sleek, exciting clients you could campaign for, building positive brand awareness for an insurance company is a tall order. With unending daytime TV pitches and constant news chatter about ‘Obamacare,’ the security offered by insurance feels closer to the security at a prison: there to keep you in(rolled).
Though reluctant, we’d be remiss not to draw your attention again to this industry. Specifically, the multi-line sector of the Zacks Industry Rank list has gained 21 positions this past week as earnings reports outpace consensus estimates.
A sprawling sector comprised of 24 companies, it now holds a rank of #26 out of 260 ranked industries. This is a boost of +21 positions over just one week. With positive earnings revisions outpacing negative 74 to 9, these businesses are now averaging positive Earnings per Share ( EPS) surprises of +20%.
Two of the insurance companies making gains recently have been upgraded in the last week to a Zacks Rank #1 (Strong Buy) from a “Buy” rating or “Hold” rating. This could signal positive future performance for these stocks in response to future positive earnings estimate revisions. Paying attention to industry trends is elemental in identifying your investment choices.
It didn’t take 15 minutes, but these companies both earned 15% or more on their insurance offerings... without even calling Geico.
Kemper Corporation ( KMPR- Free Report)
KMPR was upgraded to a Zacks Rank #1 (Strong Buy) last week from #3 (Neutral). Its next expected earnings report is on February 6, 2014.
Kemper Corporation is a financial services provider. It specializes in property and casualty insurance, life and health insurance products for individuals, families, and small businesses.
Based out of Chicago, IL, Kemper offers a dividend of 2.5% and its most recent earnings surprise was 56%. This is based in large part on the performance of property and casualty products along with higher net investment income. In addition, a share buyback also bumped revenues.
Old Republic International Corp ( ORI- Free Report)
ORI is a Zacks Rank #1 (Strong Buy). It moved up from a Zacks Rank #2 (Buy) last week. This company reports quarterly earnings on January 23, 2014.
Old Republic International Corporation is also Chicago-based and is an insurance holding company whose subsidiaries market, underwrite and provide risk management services for a wide variety of coverages in the property and liability, mortgage guaranty, title and life and health insurance fields.
Increases in premiums combined with reduced payout expenses and streamlined underwriting are contributing to Old Republic’s performance. ORI pays a dividend of 4.29% and its most recent earnings surprise was a whopping 218%.
Zacks " Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2564.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=2565.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: Terry Ruffolo
For Immediate Release