W.R. Berkley (WRB), a New England insurance company, is putting up strong numbers. As a result, on Tuesday Berkley stock’s Relative Strength Rating improved to 75, up from 67 a day earlier. Also on Tuesday, Berkley stock rose 2.6% to an all-time high 84.68, in sharp contrast to the rest of the market, which was mostly retreating.
Greenwich, Conn.-based W.R. Berkley offers property and casualty insurance, and reinsurance products through its roughly 60 business units, mainly in the Americas.
W.R. Berkley Stock Hits Fresh High Amid Changes
On Nov. 5 Berkley declared a special cash dividend of $1 per share to be paid on Dec. 22 to stockholders of record as of the close of business on Dec. 7. That came on top of a 50-cents per share special dividend paid on July 6 and in addition to the company’s regular 14-cents-a-share quarterly dividend.
The company also recently made a couple of key executive changes. It named John Henle president of its Union Standard Insurance Group, and Daniel Smyrl president of the Admiral Insurance Group.
The 75 RS Rating shows that Berkley stock is outperforming 75% of all stocks. It’s a good but not yet outstanding numbers. Stocks that go on to make the biggest gains typically have an RS Rating of above 80 in the early stages of their moves. See if W.R. Berkley stock can continue to show renewed price strength and hit that benchmark.
Among other key ratings, Berkley stock has a strong 84 Composite Rating, a composite of the five key ratings IBD uses to gauge stocks to watch and buy. Its 85 EPS Rating puts it squarely in the top 15% of all companies for recent quarters and recent years of profit growth. It carries a C Accumulation/Distribution Rating, showing that institutional investors are buying about as many of its shares as selling them. Where it really stands out though is in its recent growth numbers.
Profit Leapt 103% Last Quarter
Berkley reported a 103% leap in earnings in its most recent report, to $1.32 per share. The prior three periods its EPS rose 48%, 54% and then 999%-plus. Revenue last quarter increased 19% to $2.42 billion, its fourth quarter of double-digit sales growth.
W.R. Berkley stock is now considered extended and out of buy range after clearing a 78.53 buy point in a second-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
W.R. Berkley earns the No. 9 rank among its peers in the Insurance-Property/Casualty/Title industry group. Stewart Information Services (STC) and First American Financial (FAF) are also among the group’s highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
This proprietary rating tracks technical performance by showing how a stock’s price movement over the last 52 weeks measures up against that of the other stocks in our database.
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