Shares of Allianz SE (ALIZY) have been sturdy performers these days, with the refill 11% over the previous month. The inventory hit a brand new 52-week excessive of $35.83 within the earlier session. Allianz SE has gained 16.2% for the reason that begin of the 12 months in comparison with the 4.9% transfer for the Zacks Finance sector and the 6.1% return for the Zacks Insurance coverage – Multi line trade.
What’s Driving the Outperformance?
The inventory has a powerful document of optimistic earnings surprises, because it hasn’t missed our earnings consensus estimate in any of the final 4 quarters. In its final earnings report on February 28, 2025, Allianz reported EPS of $0.67 versus consensus estimate of $0.64.
For the present fiscal 12 months, Allianz is anticipated to submit earnings of $2.96 per share on $107.98 billion in revenues. This represents a 7.64% change in EPS on a -4.21% change in revenues. For the following fiscal 12 months, the corporate is anticipated to earn $3.27 per share on $113.44 billion in revenues. This represents a year-over-year change of 10.3% and 5.06%, respectively.
Valuation Metrics
Allianz could also be at a 52-week excessive proper now, however what would possibly the longer term maintain for the inventory? A key side of this query is having a look at valuation metrics as a way to decide if the corporate is due for a pullback from this stage.
On this entrance, we will take a look at the Zacks Model Scores, as these give traders quite a lot of methods to comb by way of shares (past trying on the Zacks Rank of a safety). These types are represented by grades working from A to F within the classes of Worth, Progress, and Momentum, whereas there’s a mixed VGM Rating as effectively. The thought behind the model scores is to assist traders choose probably the most acceptable Zacks Rank shares based mostly on their particular person funding model.
Allianz has a Worth Rating of B. The inventory’s Progress and Momentum Scores are C and B, respectively, giving the corporate a VGM Rating of B.
By way of its worth breakdown, the inventory at present trades at 12X present fiscal 12 months EPS estimates, which is a premium to the peer trade common of 10.5X. On a trailing money circulation foundation, the inventory at present trades at 11.3X versus its peer group’s common of 10.1X. Moreover, the inventory has a PEG ratio of 1.33. This is not sufficient to place the corporate within the prime echelon of all shares we cowl from a worth perspective.
Zacks Rank
We additionally want to have a look at the Zacks Rank for the inventory, as this supersedes any pattern on the model rating entrance. Fortuitously, Allianz at present has a Zacks Rank of #2 (Purchase) due to rising earnings estimates.
Since we advocate that traders choose shares carrying Zacks Rank of 1 (Robust Purchase) or 2 (Purchase) and Model Scores of A or B, it appears as if Allianz passes the take a look at. Thus, it appears as if Allianz shares may have a bit extra room to run within the close to time period.
How Does ALIZY Stack As much as the Competitors?
Shares of ALIZY have been hovering, and the corporate nonetheless seems to be a good alternative, however what about the remainder of the trade? One trade peer that appears good is CNO Monetary Group, Inc. (CNO). CNO has a Zacks Rank of # 2 (Purchase) and a Worth Rating of A, a Progress Rating of D, and a Momentum Rating of B.
Earnings have been sturdy final quarter. CNO Monetary Group, Inc. beat our consensus estimate by 22.43%, and for the present fiscal 12 months, CNO is anticipated to submit earnings of $3.83 per share on income of $3.87 billion.
Shares of CNO Monetary Group, Inc. have gained 5.9% over the previous month, and at present commerce at a ahead P/E of 10.88X and a P/CF of 10.03X.
The Insurance coverage – Multi line trade is within the prime 33% of all of the industries we’ve in our universe, so it appears like there are some good tailwinds for ALIZY and CNO, even past their very own strong basic state of affairs.
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Allianz SE (ALIZY) : Free Stock Analysis Report
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
