Shares of Everest Group, Ltd. EG closed at $336.25 on Thursday, near its 52-week high of $368.29. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
The stock is trading above the 200-day simple moving average (SMA) of $330.11, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends based on historical price data.
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The insurer has a market capitalization of $13.3 billion. The average volume of shares traded in the last three months was 0.36 million.
EG’s Average Target Price Suggests Upside
Based on short-term price targets offered by 16 analysts, the Zacks average price target is $385.25 per share. The average suggests a potential 14.6% upside from the last closing price.
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EG’s Attractive Valuation
EG’s shares are trading at a discount compared with the industry. Its price-to-book value of 0.87X is lower than the industry average of 2.57X.
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Shares of other insurers like American International Group AIG, Aegon NV AEG and Assurant, Inc. AIZ are trading at a discount to the industry average.
EG’s Growth Projection
The Zacks Consensus Estimate for Everest Group’s 2026 EPS is pinned at $52.79, indicating a year-over-year increase of 18.5%. The estimate for 2026 revenues is pegged at $16.18 billion, implying a year-over-year decline of 7.5%.
The consensus estimate for 2027 EPS indicates an increase of 13.6%, while revenues indicate a decrease of 2.7% from the corresponding 2026 estimates.
EG’s earnings grew 18% in the last five years, better than the industry average of 10.4%.
The expected long-term earnings growth is pegged at 12.4%.
Mixed Analyst Sentiment on EG
Two of the three analysts have raised estimates for 2026, while one of the two has increased estimates for 2027 over the past 30 days. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings has moved south 0.2% and north 0.3%, respectively, over the same period.
What Drives EG?
Everest's core Reinsurance Treaty business remains a major earnings driver. The segment generated $315 million of underwriting income, versus a $122 million loss a year earlier, while the combined ratio improved 1,750 basis points to 87.2% in the first quarter of 2026, reflecting disciplined underwriting and favorable reserve development. The Global Wholesale & Specialty segment turnaround is gaining momentum. Gross written premiums increased 2.9% to $793 million, while the attritional loss ratio improved 380 bps to 58.9% in the first quarter, driven by stronger underwriting and a shift toward higher-margin Specialty and Accident & Health businesses.
Everest continues to improve portfolio quality by reducing casualty exposures and maintaining conservative reserve practices. Management reported no material adverse U.S. casualty reserve developments and favorable property reserve releases, reflecting disciplined risk management.
Net investment income increased 15.5% to $567 million in the first quarter of 2026, supported by strong alternative investment returns and growth in the fixed-income portfolio. Higher limited partnership income and expanding assets under management are expected to support investment returns.
Everest Group is actively scaling operations in markets such as Mexico, Colombia, Australia, and Italy, targeting regions with strong insurance demand and underpenetrated segments. Mexico and Colombia offer growth opportunities driven by rising insurance adoption and demand for customized solutions, while Australia and Italy provide exposure to developed markets with increasing need for specialty and non-life coverage.
Everest expects meaningful capital release from the sale of its Commercial Retail Insurance business to AIG and the runoff of legacy operations, which should boost capital efficiency and shareholder returns. Additionally, the growing Mt. Logan platform, with more than $2.6 billion in assets under management, is helping expand underwriting capacity while enhancing capital efficiency and returns. As of March 31, 2026, cash and cash equivalents rose 7.4% year over year to $ 1.4 billion. In the quarter, EG repurchased $331 million of shares and paid $80 million in dividends. Management expects a minimum quarterly buyback pace of $300 million throughout 2026.
Risks for EG Stock
Property catastrophe reinsurance pricing continues to soften, which may weigh on premium growth and margins despite favorable policy terms.
Everest Group faces foreign exchange risk as it operates in currencies such as the euro, pound, and Canadian dollar while reporting in U.S. dollars.
Everest remains vulnerable to large catastrophe losses and geopolitical events. Management noted that events such as the Iran conflict can create earnings volatility, while natural disasters continue to pose risks to underwriting profitability.
Conclusion
Everest Group is poised for growth in underwriting discipline, international insurance expansion, a rise in investment income and financial flexibility. However, foreign exchange volatility, geopolitical tensions and catastrophe losses continue to be concerns.
It is, therefore, wise to retain this Zacks Rank #3 (Hold) stock presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).