Ryan Specialty Surges 7.7%: Is This an Indication of Further Gains?

Ryan Specialty Group RYAN shares ended the last trading session 7.7% higher at $59.60. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.2% gain over the past four weeks.

RYAN is all set to join S&P MidCap 400.
It is poised to grow on strong new business growth as well as meaningful contributions from the acquisitions. The M&A pipeline remains robust including both tuck-ins and large deals.
The insurer remains focused to accelerate international expansion, thus expanded presence in the United Kingdom and Europe. This apart, RYAN is set to expanding total addressable market within specialty insurance, with targeted investments in delegated authority benefits and alternative risks as well as deepening considerable moat by enhancing our scale, scope and intellectual capital.
It is on track with its ACCELERATE 2025 program. RYAN now expect to generate annual savings of about $60 million in 2025 with cumulative special charges of about $110 million through the end of 2024.

This insurance company is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +26.7%. Revenues are expected to be $705.89 million, up 20.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Ryan Specialty, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RYAN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold).

Ryan Specialty belongs to the Zacks Insurance - Brokerage industry. Another stock from the same industry, Marsh & McLennan MMC, closed the last trading session 0.3% lower at $214.40. Over the past month, MMC has returned 3.4%.

Marsh & McLennan's consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $2.38. Compared to the company's year-ago EPS, this represents a change of +8.2%. Marsh & McLennan currently boasts a Zacks Rank of #3 (Hold).

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