Sectors & IndustriesFinancial ServicesInsurance - Specialty

Best Specialty Insurance Stocks to Buy Now (2022)

Top specialty insurance stocks in 2022 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:

Mgic Investment (NYSE:MTG) is the top specialty insurance stock with a Zen Score of 54, which is 23 points higher than the specialty insurance industry average of 31. It passed 19 out of 38 due diligence checks and has strong fundamentals. Mgic Investment has seen its stock lose -14.3% over the past year, overperforming other specialty insurance stocks by 10 percentage points.

Mgic Investment has an average 1 year price target of $17.00, an upside of 32.61% from Mgic Investment's current stock price of $12.82.

Mgic Investment stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Mgic Investment, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Investors Title Co (NASDAQ:ITIC) is the second best specialty insurance stock with a Zen Score of 51, which is 20 points higher than the specialty insurance industry average of 31. It passed 17 out of 38 due diligence checks and has strong fundamentals. Investors Title Co has seen its stock lose -22.78% over the past year, overperforming other specialty insurance stocks by 2 percentage points.

Radian Group (NYSE:RDN) is the third best specialty insurance stock with a Zen Score of 50, which is 19 points higher than the specialty insurance industry average of 31. It passed 18 out of 38 due diligence checks and has strong fundamentals. Radian Group has seen its stock lose -15.1% over the past year, overperforming other specialty insurance stocks by 9 percentage points.

Radian Group has an average 1 year price target of $25.67, an upside of 33.06% from Radian Group's current stock price of $19.29.

Radian Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Radian Group, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 12 specialty insurance stocks that have issued dividends in the past year, the 3 specialty insurance stocks with the highest dividend yields are:

Investors Title Co (NASDAQ:ITIC) has an annual dividend yield of 14.07%, which is 9 percentage points higher than the specialty insurance industry average of 5.09%. Investors Title Co's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Investors Title Co's dividend has shown consistent growth over the last 10 years.

Investors Title Co's dividend payout ratio of 89.8% indicates that its high dividend yield is sustainable for the long-term.

Amerisafe (NASDAQ:AMSF) has an annual dividend yield of 11.17%, which is 6 percentage points higher than the specialty insurance industry average of 5.09%. Amerisafe's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Amerisafe's dividend has shown consistent growth over the last 10 years.

Amerisafe's dividend payout ratio of 217.6% indicates that its high dividend yield might not be sustainable for the long-term.

Enact Holdings (NASDAQ:ACT) has an annual dividend yield of 6.81%, which is 2 percentage points higher than the specialty insurance industry average of 5.09%.

Enact Holdings's dividend payout ratio of 33.7% indicates that its high dividend yield is sustainable for the long-term.

Specialty insurance stocks were down -0.84% in the last day, and down -1.22% over the last week.

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

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

Trean Insurance Group (NASDAQ:TIG) is the most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Trean Insurance Group has a valuation score of 100, which is 56 points higher than the specialty insurance industry average of 44. It passed 7 out of 7 valuation due diligence checks.

Trean Insurance Group's stock has dropped -67.15% in the past year. It has underperformed other stocks in the specialty insurance industry by -43 percentage points.

Investors Title Co (NASDAQ:ITIC) is the second most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Investors Title Co has a valuation score of 86, which is 42 points higher than the specialty insurance industry average of 44. It passed 6 out of 7 valuation due diligence checks.

Investors Title Co's stock has dropped -22.78% in the past year. It has overperformed other stocks in the specialty insurance industry by 2 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 27 points higher than the specialty insurance industry average of 44. It passed 5 out of 7 valuation due diligence checks.

Radian Group's stock has dropped -15.1% in the past year. It has overperformed other stocks in the specialty insurance industry by 9 percentage points.