The Panic-Proof Portfolio (Stockchase Research) Everest Group, Ltd. EG-N PAST TOP PICK Dec 17, 2024

EG is a Bermuda based reinsurance company who recently reported earnings of $678 million, 20% ROE and 23% growth in premiums written.  January is a big month in renewals and the company believes they are well positioned.  It trades at 7x earnings and 1.4x book.  We recommend placing a stop-loss at $315, looking to achieve $447 -- upside potential of 22%.  Yield 1.8%    

Our PAST TOP PICK with EG is progressing well.  To remain disciplined, we recommend trailing up the stop (from $315) to $344 at this time.  

We reiterate this reinsurance company as a TOP PICK.  Earnings will be released by month's end, so we will see if the company will be able to continue its EPS growth rates that it has seen over the past five years.  It trades at 6x earnings, 1.2x book and supports a ROE of 23%.  Its dividend is backed by a payout ratio under 15% of cash flow.  We continue to recommend a stop at $344, looking to achieve $430 -- upside potential of 17%.  Yield 1.8%

Our PAST TOP PICK with EG is progressing well.  To remain disciplined, we recommend trailing up the stop (from $344) to $357 at this time.