Kinsale Capital is Tuesday's IBD Stock Of The Day, as the growth stock angled higher Tuesday, gaining ground on a buy point, with Wall Street expecting 30% earnings growth in the fourth quarter with the insurers reporting next week.
Virginia-based Kinsale Capital provides various casualty, property and professional lines, and transportation insurance products focusing on the excess and surplus lines market in the U.S. The company's casualty insurance covers everything from cannabis to construction industries.
Meanwhile, the specialty casualty unit handles energy, entertainment, environmental and life sciences industries along with product recall and product liability. Kinsale Capital also has health care exposure. Its professional lines oversee health and public entities and professional liability coverage. The company's transportation unit insures aviation, auto and marine businesses.
Kinsale Capital was originally listed on the Nasdaq when it went public in 2016. However, KNSL moved from the Nasdaq and began trading on the New York Stock Exchange on Jan. 3, 2022, under the same ticker.
The insurer reports earnings and revenue on Feb. 15 after averaging more than 67% EPS growth over the last three quarters, including a 100% gain in Q3. Analysts predict Q4 earnings will grow 30% to $3.39 per share and see total revenue increasing 38% to $336 million.
Kinsale Capital Stock Performance
Meanwhile, Wall Street forecasts 2024 EPS growing 20% compared to projected 2023 levels and 84% above 2022 earnings. Analysts expect Kinsale Capital profit will gain another 40% by 2026, according to FactSet.
KNSL stock advanced 1.8% to 401.38 in below-average volume during Tuesday market action. In 2024, Kinsale Capital stock has gained around 19%, outperforming the S&P 500 index after surging 52% last year. Kinsale Capital stock has been trading above its 200-day moving average since Jan. 10.
The stock is in a cup-with-handle base with an official buy point of 411.32, its high from Jan. 24. Kinsale Capital stock is an IBD Long-Term Leader and is also an IBD Sector Leader. KNSL is currently around 3% below that entry with fourth-quarter earnings and revenue due on Feb. 15.
Kinsale Capital stock has a 98 Composite Rating out of 99. KNSL also has an 82 Relative Strength Rating and a perfect 99 EPS Rating.
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