Reinsurance Group Rallies 35.1% YTD: What’s Driving the Stock?
Reinsurance Group of America (NYSE: RGA) shares have rallied 35.1% year to date (YTD) compared with the industry’s growth of 21.5%. The Finance sector and the Zacks S&P 500 index have returned 14.3% and 20% YTD, respectively. With a market capitalization of $14.39 billion, the average volume of shares traded in the last three months was 0.3 million.
RGA Outperforms Industry, Sector, S&P YTD
Image Source: Zacks Investment Research
The rally was driven by its strong momentum in U.S. Traditional, Longevity/PRT, Asia Asset-Intensive and Asia Traditional, along with solid growth projections.
RGA has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
RGA Trading Above 50-Day and 200-Day Moving Average
This Zacks Rank #3 (Hold) insurance broker closed at $218.58 on Thursday, above its 50-day and 200-day simple moving average of $213.23 and $193.40, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Reinsurance Group’s Earnings Surprise History
Reinsurance Group has a decent earnings surprise history. Its earnings beat estimates in each of the last four quarters with an average surprise of 20.51%.
RGA’s Growth Projection Encourages
The Zacks Consensus Estimate for Reinsurance Group’s 2024 earnings per share indicates a year-over-year increase of 9.1%. The consensus estimate for revenues is pegged at $21.85 billion, implying a year-over-year improvement of 14.7%.
The consensus estimate for 2025 earnings per share indicates a year-over-year increase of 3.4% from the corresponding 2024 estimates.
The expected long-term earnings growth rate is 10.4%, outperforming the industry average of 4.6%. RGA has an impressive Growth Score …
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