Valued at a market cap of $14.8 billion, Everest Group, Ltd. (EG) is a global leader in reinsurance and insurance solutions, delivering a comprehensive range of risk management products worldwide. Headquartered in Hamilton, Bermuda, the company serves diverse markets, offering innovative reinsurance and primary insurance solutions tailored to the evolving needs of individuals and businesses.
Shares of Everest Group have plunged 6.4% over the past year, lagging behind the broader S&P 500 Index’s ($SPX) 17.5% return during the same time frame. Plus, in 2025, the stock is down 5.2% compared to the SPX’s 1.3% return on a YTD basis.
Zooming in further, EG underperformed compared to the Invesco KBW Property & Casualty Insurance ETF’s (KBWP) 13.2% returns over the past 52 weeks.
Everest Group has underperformed the broader market due to economic headwinds, rising costs, and industry challenges, though analysts remain optimistic about its long-term potential. Its Q4 earnings report, released on Feb. 3, presented a mixed outlook, leading to a 1% drop in share price in the next trading session. Revenue grew 26.7% year-over-year to $4.64 billion, surpassing Wall Street’s $4.44 billion forecast. However, the company reported a net loss of $593 million and a net operating loss of $780 million, primarily driven by unfavorable prior-year loss reserve developments in U.S. casualty lines. Additionally, operating cash flow for the quarter declined to $780 million, compared to $1 billion in the same period last year.
For the current fiscal year, ending in December, analysts expect EG’s EPS to grow 60.7% year over year to $47.93. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in two of the last four quarters while missing on other two occasions.
Among the 14 analysts covering the stock, the consensus view is a “Moderate Buy,” which is based on four “Strong Buy,” one “Moderate Buy,” eight “Holds,” and one “Strong Sell” ratings.
The configuration is slightly less bullish than a month ago when six analysts suggested a “Strong Buy.”
On Feb. 4, Joshua Shanker from Bank of America Securities maintained a “Buy” rating on Everest Group.
The average analyst price target of $397.69 indicates 15.7% potential upside from the current price levels. Also, the Street-high price target of $476 suggests that EG could rally as much as 38.5% from here.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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