Kinsale Capital Group, Inc. (knsl) Stock Sinks As Market Gains: Here's Why

Kinsale Capital Group, Inc. (KNSL) closed the most recent trading day at $448.28, moving -1.36% from the previous trading session. This move lagged the S&P 500's daily gain of 0.49%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq appreciated by 1.22%.

Heading into today, shares of the company had lost 5.16% over the past month, outpacing the Finance sector's loss of 5.85% and the S&P 500's loss of 8.15% in that time.

The upcoming earnings release of Kinsale Capital Group, Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $3.17, marking a 9.43% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $424.62 million, up 13.9% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.34 per share and revenue of $1.8 billion, indicating changes of +7.97% and +13.28%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Kinsale Capital Group, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 4.47% lower within the past month. Kinsale Capital Group, Inc. is currently a Zacks Rank #3 (Hold).

With respect to valuation, Kinsale Capital Group, Inc. is currently being traded at a Forward P/E ratio of 26.21. This represents a premium compared to its industry's average Forward P/E of 11.42.

Investors should also note that KNSL has a PEG ratio of 1.75 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.75 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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