(EG) Everest - Ratings and Ratios

Everest Group Ltd is a global reinsurer and insurer operating through its subsidiaries, providing a range of insurance and reinsurance products across the United States, Europe, and other international markets. The company is structured into two main business segments: Insurance and Reinsurance, allowing it to diversify its offerings and risk exposure. Through these segments, Everest Group writes various types of reinsurance, including property and casualty, treaty, and facultative reinsurance, as well as specialty lines. It also provides direct insurance coverage for property and casualty through multiple distribution channels, including brokers, surplus lines, and general agents.

The companys product portfolio is diverse, including reinsurance products for mortgage, catastrophe, marine, aviation, and other specialized areas. This diversification helps in managing risk and capitalizing on opportunities across different sectors. Everest Groups insurance products are offered through various channels, including wholesale and retail brokers, surplus lines brokers, and program administrators, making its offerings accessible to a broad customer base. With its headquarters in Hamilton, Bermuda, and a history dating back to 1973, Everest Group has established itself as a significant player in the global insurance and reinsurance market.

From a technical analysis perspective, the stocks recent price movements indicate a relatively stable trend, with the last price being $343.82, slightly above its 20-day Simple Moving Average (SMA) of $343.42. However, it is below its 50-day SMA of $347.03 and significantly below its 200-day SMA of $359.31, suggesting a potential downward trend in the medium to long term. The Average True Range (ATR) of 7.88, or 2.29%, indicates moderate volatility. Given the current technical indicators and fundamental data such as a P/E ratio of 16.95 and a forward P/E of 6.81, a forecast could involve a potential buy signal if the stock price stabilizes above its 50-day SMA and shows signs of breaking through resistance levels.

Considering the fundamental data, Everest Groups market capitalization stands at $14.289 billion, with a Return on Equity (RoE) of 5.91%. The discrepancy between the current P/E and the forward P/E suggests anticipated growth or improved profitability. Using both technical and fundamental analysis, a potential forecast could be that if Everest Group Ltd can demonstrate a sustained recovery and break through its current resistance levels, coupled with an improvement in its RoE and maintaining a stable P/E ratio, the stock could see a positive trajectory in the coming months. A target price could be set around $380, based on a combination of its 52-week high of $400.34 and its current fundamental and technical indicators, representing a potential upside of about 10.5% from its current price.