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 6.03% over the past year, underperforming other specialty insurance stocks by -11 percentage points.

Axis Capital Holdings has an average 1 year price target of $72.33, an upside of 19.28% from Axis Capital Holdings's current stock price of $60.64.

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 48.33% 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 15.25% from Assurant's current stock price of $172.88.

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 32.69% over the past year, overperforming other specialty insurance stocks by 16 percentage points.

Essent Group has an average 1 year price target of $59.40, an upside of 10.04% from Essent Group's current stock price of $53.98.

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 117.3%, which is 107 percentage points higher than the specialty insurance industry average of 10.66%. 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 10.73%, which is the same as the specialty insurance industry average of 10.66%. 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 151.4% indicates that its high dividend yield might not be sustainable for the long-term.

First American Financial (NYSE:FAF) has an annual dividend yield of 3.89%, which is -7 percentage points lower than the specialty insurance industry average of 10.66%. First American Financial's dividend payout is stable, having never dropped by more than 10% in the last 10 years. First American Financial's dividend has shown consistent growth over the last 10 years.

First American Financial's dividend payout ratio of 101% indicates that its dividend yield might not be sustainable for the long-term.

Specialty insurance stocks were down -0.22% in the last day, and down -0.61% 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 43 points higher than the specialty insurance industry average of 43. It passed 6 out of 7 valuation due diligence checks.

Nmi Holdings's stock has gained 39.13% in the past year. It has overperformed other stocks in the specialty insurance industry by 22 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 28 points higher than the specialty insurance industry average of 43. It passed 5 out of 7 valuation due diligence checks.

Axis Capital Holdings's stock has gained 6.03% in the past year. It has underperformed other stocks in the specialty insurance industry by -11 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 28 points higher than the specialty insurance industry average of 43. It passed 5 out of 7 valuation due diligence checks.

Enact Holdings's stock has gained 26.8% in the past year. It has overperformed other stocks in the specialty insurance industry by 10 percentage points.