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Best Specialty Insurance Stocks to Buy Now (2023)

Top specialty insurance stocks in 2023 ranked by overall Zen Score. See the best specialty insurance stocks to buy now, according to analyst forecasts for the insurance - specialty industry.

According to Zen Score, the 3 best specialty insurance stocks to buy right now are:

Axis Capital Holdings (NYSE:AXS) is the top specialty insurance stock with a Zen Score of 48, which is 15 points higher than the specialty insurance industry average of 33. It passed 17 out of 38 due diligence checks and has strong fundamentals. Axis Capital Holdings has seen its stock return 11.81% over the past year, overperforming other specialty insurance stocks by 8 percentage points.

Axis Capital Holdings has an average 1 year price target of $61.80, an upside of 6.64% from Axis Capital Holdings's current stock price of $57.95.

Axis Capital Holdings stock has a consensus Hold recommendation according to Wall Street analysts. Of the 5 analysts covering Axis Capital Holdings, 40% have issued a Strong Buy rating, 0% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 40% have issued a Strong Sell.

Ambac Financial Group (NYSE:AMBC) is the second best specialty insurance stock with a Zen Score of 45, which is 12 points higher than the specialty insurance industry average of 33. It passed 14 out of 33 due diligence checks and has strong fundamentals. Ambac Financial Group has seen its stock lose -8.1% over the past year, underperforming other specialty insurance stocks by -12 percentage points.

Mgic Investment (NYSE:MTG) is the third best specialty insurance stock with a Zen Score of 45, which is 12 points higher than the specialty insurance industry average of 33. It passed 15 out of 38 due diligence checks and has strong fundamentals. Mgic Investment has seen its stock return 26.1% over the past year, overperforming other specialty insurance stocks by 22 percentage points.

Mgic Investment has an average 1 year price target of $18.00, an upside of 6.45% from Mgic Investment's current stock price of $16.91.

Mgic Investment stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Mgic Investment, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 14 specialty insurance stocks that have issued dividends in the past year, the 3 specialty insurance stocks with the highest dividend yields are:

Amerisafe (NASDAQ:AMSF) has an annual dividend yield of 10.35%, which is 7 percentage points higher than the specialty insurance industry average of 3.49%. Amerisafe's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Amerisafe's dividend has shown consistent growth over the last 10 years.

Amerisafe's dividend payout ratio of 155.9% indicates that its high dividend yield might not be sustainable for the long-term.

Employers Holdings (NYSE:EIG) has an annual dividend yield of 5.67%, which is 2 percentage points higher than the specialty insurance industry average of 3.49%. Employers Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Employers Holdings's dividend has shown consistent growth over the last 10 years.

Employers Holdings's dividend payout ratio of 50.3% indicates that its high dividend yield is sustainable for the long-term.

Enact Holdings (NASDAQ:ACT) has an annual dividend yield of 5.14%, which is 2 percentage points higher than the specialty insurance industry average of 3.49%.

Enact Holdings's dividend payout ratio of 40.8% indicates that its high dividend yield is sustainable for the long-term.

Specialty insurance stocks were up 0.07% in the last day, and down -0.56% over the last week.

We couldn't find a catalyst for why specialty insurance stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued specialty insurance stocks right now are:

Icc Holdings (NASDAQ:ICCH) is the most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Icc Holdings has a valuation score of 86, which is 49 points higher than the specialty insurance industry average of 37. It passed 6 out of 7 valuation due diligence checks.

Icc Holdings's stock has gained 2.22% in the past year. It has underperformed other stocks in the specialty insurance industry by -2 percentage points.

Ambac Financial Group (NYSE:AMBC) is the second most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Ambac Financial Group has a valuation score of 71, which is 34 points higher than the specialty insurance industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Ambac Financial Group's stock has dropped -8.1% in the past year. It has underperformed other stocks in the specialty insurance industry by -12 percentage points.

Radian Group (NYSE:RDN) is the third most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Radian Group has a valuation score of 71, which is 34 points higher than the specialty insurance industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Radian Group's stock has gained 26.88% in the past year. It has overperformed other stocks in the specialty insurance industry by 23 percentage points.