Everest Re Group (RE) to Join the S&P 500, Stock Gains
Everest Re Group Ltd. RE is set to join the S&P 500, replacing Mead Johnson Nutrition Co. (MJN) after trading closes on Friday, Jun 16. With market capitalization of $10.6 billion, Everest Re is a good fit for the S&P 500 index.
Specifically, Everest Re Group will be added to the S&P 500 GICS (Global Industry Classification Standard) Insurance Reinsurance Sub-Industry index. Shares of Everest Re Group gained about 1% in yesterday’s trading session to close at $258.12.
Subsequently, the property and casualty insurer, presently a member of the S&P MidCap 400, will be replaced by Pinnacle Financial (PNFP), which was a member of the S&P SmallCap 600.
Revision in the S&P 500 is an ongoing process with acquisitions or not-so strong performances by companies in the elite group. This month, Tegna, Inc. TGNA was removed from the S&P 500 list and replaced with IHS Markit Ltd. (INFO).
Shares of Everest Re Group have surged 10.42% quarter to date, outperforming the Zacks categorized Property and Casualty Insurance industry’s gain of 2.81%. Also, the stock has witnessed positive estimate revisions in the last 60 days. The Zacks Consensus Estimate moved up 6.5% for 2017 and 0.5% to $20.00 for 2018 as most estimates were revised higher. The company delivered positive surprises in the last four quarters, with an average beat of 49.74%.
Hamilton, Bermuda-based Everest Re Group writes property and casualty (P&C) reinsurance and insurance in the U.S., Bermuda and international markets. The company remains well poised for long-term growth on traditional risk management capabilities, capital adequacy, financial flexibility and huge market share in insurance and reinsurance market. The expected long-term earnings growth is pegged at 10%. This stock currently carries a Zacks Rank #3 (Hold).
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