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:

Mgic Investment (NYSE:MTG) is the top specialty insurance stock with a Zen Score of 54, which is 20 points higher than the specialty insurance industry average of 34. It passed 19 out of 38 due diligence checks and has strong fundamentals. Mgic Investment has seen its stock return 44.95% over the past year, overperforming other specialty insurance stocks by 26 percentage points.

Mgic Investment has an average 1 year price target of $21.30, an upside of 0.24% from Mgic Investment's current stock price of $21.25.

Mgic Investment stock has a consensus Hold recommendation according to Wall Street analysts. Of the 5 analysts covering Mgic Investment, 20% have issued a Strong Buy rating, 0% have issued a Buy, 80% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Assured Guaranty (NYSE:AGO) is the second best specialty insurance stock with a Zen Score of 51, which is 17 points higher than the specialty insurance industry average of 34. It passed 18 out of 38 due diligence checks and has strong fundamentals. Assured Guaranty has seen its stock return 50.42% over the past year, overperforming other specialty insurance stocks by 31 percentage points.

Assured Guaranty has an average 1 year price target of $89.67, an upside of 13.2% from Assured Guaranty's current stock price of $79.21.

Assured Guaranty stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Assured Guaranty, 0% have issued a Strong Buy rating, 33.33% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Axis Capital Holdings (NYSE:AXS) is the third best specialty insurance stock with a Zen Score of 49, which is 15 points higher than the specialty insurance industry average of 34. It passed 17 out of 38 due diligence checks and has strong fundamentals. Axis Capital Holdings has seen its stock return 28.21% over the past year, overperforming other specialty insurance stocks by 9 percentage points.

Axis Capital Holdings has an average 1 year price target of $74.33, an upside of 5.39% from Axis Capital Holdings's current stock price of $70.53.

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.

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 130.08%, which is 119 percentage points higher than the specialty insurance industry average of 11.45%. 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 -78.7% indicates that its high dividend yield might not be sustainable for the long-term.

Amerisafe (NASDAQ:AMSF) has an annual dividend yield of 10.43%, which is -1 percentage points lower than the specialty insurance industry average of 11.45%. 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 3.77%, which is -8 percentage points lower than the specialty insurance industry average of 11.45%. 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 -0.35% in the last day, and up 2.88% 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:

Enact Holdings (NASDAQ:ACT) is the most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Enact Holdings has a valuation score of 71, which is 30 points higher than the specialty insurance industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Enact Holdings's stock has gained 32.53% in the past year. It has overperformed other stocks in the specialty insurance industry by 13 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 30 points higher than the specialty insurance industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Axis Capital Holdings's stock has gained 28.21% in the past year. It has overperformed other stocks in the specialty insurance industry by 9 percentage points.

Icc Holdings (NASDAQ:ICCH) is the third most undervalued specialty insurance stock based on WallStreetZen's Valuation Score. Icc Holdings has a valuation score of 71, which is 30 points higher than the specialty insurance industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Icc Holdings's stock has dropped -3.03% in the past year. It has underperformed other stocks in the specialty insurance industry by -22 percentage points.