Skyward Specialty Trading at a Premium: How Should You Play the Stock?

Zacks12-17

Shares of Skyward Specialty Insurance Group, Inc. SKWD are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book of 2.62X is higher than the industry average of...

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Its price-to-book of 2.62X is higher than the industry average of...</p>\n\n<a href=\"https://finance.yahoo.com/news/skyward-specialty-trading-premium-play-151800357.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Skyward Specialty Trading at a Premium: How Should You Play the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSkyward Specialty Trading at a Premium: How Should You Play the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-17 23:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/skyward-specialty-trading-premium-play-151800357.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Skyward Specialty Insurance Group, Inc. SKWD are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book of 2.62X is higher than the industry average of...</p>\n\n<a href=\"https://finance.yahoo.com/news/skyward-specialty-trading-premium-play-151800357.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999004303.SGD","symbol_name":"Nikko AM Shenton Global Opportunities SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/skyward-specialty-trading-premium-play-151800357.html","article_id":"2492967505","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EEUv5JQFTAI4U5iqIocwgw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/9d8e6ae4a2f2f78756262fb38b308001"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492967505","pubTimestamp":1734448680,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of Skyward Specialty Insurance Group, Inc. SKWD are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book of 2.62X is higher than the industry average of 1.55X. It has a Value Score of B.Shares of other insurers like Aflac Inc AFL, The Progressive Corporation PGR and The Travelers Companies TRV are also trading at a multiple higher than the industry average.Skyward Specialty operates in an underpenetrated niche market for which standard insurance coverages are insufficient or inadequate. Thus, with tailor-made products and services, prudent underwriting and technology, this insurer is well poised to capitalize on the market opportunities. Notably, all eight divisions are now at a scale that can sustainably contribute to overall earnings.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","SKWD":"SKYWARD SPECIALTY INS GROUP INC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU1481011671.HKD":"FIDELITY GLOBAL DIVIDEND \"A\" (HKDHDG) INC","LU1481011911.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USDHDG) INC","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","BK4080":"零售业房地产投资信托","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU2108987350.USD":"UBS (LUX) EQUITY SICAV GLOBAL OPPORTUNITY SUSTAINABLE (USD) \"P\" (USD) ACC","LU0472753341.HKD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (HKD) ACC","LU0057025933.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (USD) ACC","LU2355687059.USD":"NORDEA 1 GLOBAL IMPACT  \"BP\" (USD) ACC","PGR":"美国前进保险公司","LU0689626769.HKD":"AB SICAV I - SUSTAINABLE US THEMATIC PORTFOLIO \"A\" (HKD) ACC","ROIC":"Retail Opportunity Investments C","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","LU1069347547.HKD":"AB SICAV I - GLOBAL VALUE PORTFOLIO \"AD\" (HKD) INC","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","LU0289960550.SGD":"AB FCP I - GLOBAL EQUITY BLEND PORTFOLIO 'A' (SGD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","IE00BGHQF631.EUR":"GUINNESS GLOBAL EQUITY INCOME \"C\" (EUR) ACC","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","IE00BVYPNV92.GBP":"GUINNESS GLOBAL EQUITY INCOME \"C\" (GBP) ACC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE00B42XCP33.USD":"GUINNESS GLOBAL EQUITY INCOME \"C\" (USD) INC","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU1599440770.SGD":"FIDELITY GLOBAL DIVIDEND \"A\" (SGDHDG) INC","SG9999003800.SGD":"Nikko AM Global Dividend Equity Acc SGD-H","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","LU1235295455.SGD":"Fidelity Global Multi Asset Growth & Income A-ACC-SGD","IE00BVYPNW00.USD":"GUINNESS GLOBAL EQUITY INCOME \"C\" (USD) ACC","LU0731783048.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) INC MONTHLY (G)","SG9999011175.SGD":"Nikko AM Global Dividend Equity Dis SGD-H","LU1509826696.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) INC B","LU1983260115.SGD":"Janus Henderson Horizon Global Sustainable Equity A2 SGD-H","BK4585":"ETF&股票定投概念","LU0124676726.USD":"AB SICAV I - SUSTAINABLE US THEMATIC PORTFOLIO \"A\" (USD) ACC","AFL":"美国家庭寿险","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0742537680.HKD":"FIDELITY GLOBAL DIVIDEND \"A \" (HKD) INC","LU0772969993.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) ACC","BK4162":"人寿与健康保险","TRV":"旅行者财产险集团"},"translate_title":"Skyward Specialty溢价交易：你应该如何玩股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TRV":1,"AFL":1,"PGR":1,"ROIC":1,"SKWD":0.9},"content_text":"Shares of Skyward Specialty Insurance Group, Inc. SKWD are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book of 2.62X is higher than the industry average of 1.55X. It has a Value Score of B. Shares of other insurers like Aflac Inc AFL, The Progressive Corporation PGR and The Travelers Companies TRV are also trading at a multiple higher than the industry average.Skyward Specialty operates in an underpenetrated niche market for which standard insurance coverages are insufficient or inadequate. Thus, with tailor-made products and services, prudent underwriting and technology, this insurer is well poised to capitalize on the market opportunities. Notably, all eight divisions are now at a scale that can sustainably contribute to overall earnings. \nImage Source: Zacks Investment Research\nIts shares have rallied 52.5% in the last six months, outperforming the industry’s increase of 12%, the Finance sector’s rise of 8.1% and the Zacks S&P 500 composite’s gain of 10.6% in the same time frame. An improved top line, expanded margins and sufficient financial flexibility should continue to drive shares of this specialty property and casualty insurer.\nSkyward Specialty Outperforms Industry, Sector & S&P YTD\nImage Source: Zacks Investment Research\nSKWD shares are trading well above the 50-day moving average, indicating a bullish trend.\nOptimistic Growth for SKWD\nThe Zacks Consensus Estimate for 2024 implies a 45% year-over-year increase, while the same for 2025 suggests a 10.1% increase. The Zacks Consensus Estimate for 2024 revenues implies a 28.7% year-over-year increase, while the same for 2025 suggests an 11.7% increase. SKWD has a Growth Score of B. The expected long-term earnings growth rate is pegged at 18%, better than the industry average of 12%.\nAverage Target Price for SKWD Suggests a Downside\nBased on short-term price targets offered by nine analysts, the Zacks average price target is at $51.56 per share. The average suggests a potential 1.1% downside from Monday’s closing price.\nSKWD’s Growth Strategy\nSkyward Specialty’s growth strategy includes focusing on high-return areas that are less exposed to P&C cycles, prudent pricing, better retention and shifting of the business mix toward more profitable lines. This in turn should continue to support an improved combined ratio.The addition of Life Sciences liability coverage to its Healthcare Solutions underwriting unit should provide a competitive advantage. Skyward Specialty envisions being a leader in the life sciences liability market.SKWD is de-risking its portfolio and diverting free cash flow to fixed income.  This prudent investment strategy has been paying off well. Despite the recent rate cuts, a broader invested asset base should help SKWD maintain healthy investment results. Skyward Specialty has been strengthening its balance sheet by lowering its debt balance while improving its cash balance. This, in turn, also offers financial flexibility. Though its leverage compares favorably with the industry average, the times interest earned compares unfavorably with the industry average.\nSKWD’s Favorable Return on Capital\nReturn on equity in the trailing 12 months was 16.4%, higher than the industry average of 7.5%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.Its return on invested capital (ROIC) has been increasing in the last few quarters. The insurer has also invested over the same time period. This reflects SKWD’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 13.2%, higher than the industry average of 5.8%.\nParting Thoughts\nThe insurer’s efforts to improve its top line, expand margins and shape a portfolio that offers the best risk-adjusted returns on capital enables SKWD to enjoy low underwriting volatility and a competitive moat. A VGM Score of A instills confidence in the stock.However, given its expensive valuation and average target price, which indicate potential downside, it is better to adopt the wait-and-see approach for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe Travelers Companies, Inc. (TRV) : Free Stock Analysis Report\nAflac Incorporated (AFL) : Free Stock Analysis Report\nThe Progressive Corporation (PGR) : Free Stock Analysis Report\nSkyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492967505"}