Skyward Specialty Insurance Group, Inc. (SKWD) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Skyward Specialty Insurance (SKWD)? Shares have been on the move with the stock up 11.1% over the past month. The stock hit a new 52-week high of $48.4 in the previous session. Skyward Specialty Insurance has gained 34.3% since the start of the year compared to the 19.3% move for the Zacks Finance sector and the 26.7% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 5, 2024, Skyward reported EPS of $0.8 versus consensus estimate of $0.66 while it missed the consensus revenue estimate by 0.98%.For the current fiscal year, Skyward is expected to post earnings of $2.98 per share on $1.13 billion in revenues. This represents a 41.23% change in EPS on a 27.98% change in revenues. For the next fiscal year, the company is expected to earn $3.27 per share on $1.29 billion in revenues. This represents a year-over-year change of 9.73% and 13.59%, respectively.Valuation MetricsSkyward may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Skyward has a Value Score of B. The stock's Growth and Momentum Scores are D and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 15.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.7X. On a trailing cash flow basis, the stock currently trades at 20.2X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 0.85. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Skyward currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Skyward passes the test. Thus, it seems as though Skyward shares could have a bit more room to run in the near term.How Does SKWD Stack Up to the Competition?Shares of SKWD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Travelers Companies, Inc. (TRV). TRV has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.Earnings were strong last quarter. The Travelers Companies, Inc. beat our consensus estimate by 38.26%, and for the current fiscal year, TRV is expected to post earnings of $20.40 per share on revenue of $46.44 billion.Shares of The Travelers Companies, Inc. have gained 6.1% over the past month, and currently trade at a forward P/E of 13.52X and a P/CF of 5.71X.The Insurance - Property and Casualty industry may rank in the bottom 56% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SKWD and TRV, even beyond their own solid fundamental situation.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want 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 Skyward Specialty Insurance Group, Inc. (SKWD): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks