Earnings Estimates Moving Higher for Fidelis Insurance (FIHL): Time to Buy?

Zacks Equity Research
2 min read

In This Article:

  • Fidelis Insurance Holdings' earnings outlook is improving, with analysts raising their estimates for the company, which could lead to a higher stock price.
  • Consensus earnings estimates for the next quarter and full year have moved considerably higher, with a 5.52% increase in the Zacks Consensus Estimate over the last 30 days.
  • The company's promising estimate revisions have earned it a Zacks Rank #1 (Strong Buy), indicating that further upside may still be left in the stock.
  • The stock has already risen 10.8% over the past four weeks, but it may still be a solid choice for investors to consider adding to their portfolio.
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Fidelis Insurance Holdings (FIHL) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this insurance and reinsurance company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Fidelis Insurance, as there has been strong agreement among the covering analysts in raising estimates.

Current-Quarter Estimate Revisions

The earnings estimate of $0.96 per share for the current quarter represents a change of -16.52% from the number reported a year ago.

Over the last 30 days, the Zacks Consensus Estimate for Fidelis Insurance has increased 5.52% because one estimate has moved higher while one has gone lower.

Current-Year Estimate Revisions

The company is expected to earn $3.15 per share for the full year, which represents a change of -9.74% from the prior-year number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, two estimates have moved up for Fidelis Insurance versus no negative revisions. This has pushed the consensus estimate 8.26% higher.

Favorable Zacks Rank

The promising estimate revisions have helped Fidelis Insurance earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Fidelis Insurance have attracted decent investments and pushed the stock 10.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.

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