Sectors & IndustriesFinancial ServicesInsurance - Specialty

Best Specialty Insurance Stocks to Buy Now (2024)

Top specialty insurance stocks in 2024 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 54, which is 21 points higher than the specialty insurance industry average of 33. It passed 19 out of 38 due diligence checks and has strong fundamentals. Axis Capital Holdings has seen its stock return 7.66% over the past year, underperforming other specialty insurance stocks by -5 percentage points.

Axis Capital Holdings has an average 1 year price target of $72.33, an upside of 19.15% from Axis Capital Holdings's current stock price of $60.71.

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

Assurant (NYSE:AIZ) is the second best specialty insurance stock with a Zen Score of 52, which is 19 points higher than the specialty insurance industry average of 33. It passed 18 out of 38 due diligence checks and has strong fundamentals. Assurant has seen its stock return 42.89% over the past year, overperforming other specialty insurance stocks by 31 percentage points.

Assurant has an average 1 year price target of $199.25, an upside of 17.15% from Assurant's current stock price of $170.08.

Assurant stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Assurant, 75% have issued a Strong Buy rating, 0% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Essent Group (NYSE:ESNT) is the third best specialty insurance stock with a Zen Score of 52, which is 19 points higher than the specialty insurance industry average of 33. It passed 18 out of 38 due diligence checks and has strong fundamentals. Essent Group has seen its stock return 25.19% over the past year, overperforming other specialty insurance stocks by 13 percentage points.

Essent Group has an average 1 year price target of $59.40, an upside of 13.51% from Essent Group's current stock price of $52.33.

Essent Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Essent Group, 20% have issued a Strong Buy rating, 20% have issued a Buy, 60% 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:

Mbia (NYSE:MBI) has an annual dividend yield of 130.72%, which is 119 percentage points higher than the specialty insurance industry average of 11.56%. Mbia's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Mbia's dividend has not shown consistent growth over the last 10 years.

Mbia's dividend payout ratio of -78.6% indicates that its high dividend yield might not be sustainable for the long-term.

Amerisafe (NASDAQ:AMSF) has an annual dividend yield of 10.05%, which is -2 percentage points lower than the specialty insurance industry average of 11.56%. 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 150% indicates that its high dividend yield might not be sustainable for the long-term.

Fidelity National Financial (NYSE:FNF) has an annual dividend yield of 3.96%, which is -8 percentage points lower than the specialty insurance industry average of 11.56%. Fidelity National Financial's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Fidelity National Financial's dividend has shown consistent growth over the last 10 years.

Fidelity National Financial's dividend payout ratio of 95.8% indicates that its dividend yield might not be sustainable for the long-term.

Specialty insurance stocks were down -0.68% in the last day, and down -3.11% 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:

Nmi Holdings (NASDAQ:NMIH) is the most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Nmi Holdings 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.

Nmi Holdings's stock has gained 27.26% in the past year. It has overperformed other stocks in the specialty insurance industry by 15 percentage points.

Axis Capital Holdings (NYSE:AXS) is the second most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Axis Capital Holdings 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.

Axis Capital Holdings's stock has gained 7.66% in the past year. It has underperformed other stocks in the specialty insurance industry by -5 percentage points.

Enact Holdings (NASDAQ:ACT) is the third most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Enact Holdings 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.

Enact Holdings's stock has gained 19.8% in the past year. It has overperformed other stocks in the specialty insurance industry by 7 percentage points.