Stock of the Day

November 10, 2021

Selective Insurance Group (SIGI)

$91.29
-$1.17 (-1.3%)
Market Cap: $5.51B

About Selective Insurance Group

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. The company operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers casualty insurance products that covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party; property insurance products, which covers the accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and flood insurance products. The company also invests in fixed income investments and commercial mortgage loans, as well as equity securities, short-term investments, and alternative investments, and other investments. It offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. The company was founded in 1926 and is headquartered in Branchville, New Jersey.

Today's Trend

Selective Insurance Group, Inc. (NASDAQ: SIGI) is receiving mixed but generally constructive analyst attention. The stock has been trading higher and near its 52-week high, supported by expectations for profitable growth, disciplined underwriting, strong excess-and-surplus (E&S) insurance performance and increased investment income.

  • Zacks Research raised its FY2026 EPS forecast to $8.05 from $7.72, while increasing estimates for Q3 2026 to $1.82 from $1.80 and Q4 2026 to $2.59 from $2.58. The revisions suggest improving near-term earnings expectations and align FY2026 EPS with the current consensus.
  • A Zacks analysis highlighted Selective Insurance’s disciplined underwriting, strong E&S results and higher investment income as factors supporting growth despite challenges across the insurance industry. These trends may reinforce investor confidence in the company’s earnings outlook. SIGI Outperforms Industry, Trades Near 52-Week High: Time to Buy?
  • The company trades at roughly 11.7 times earnings, with a market capitalization of about $5.6 billion. Its shares remain above the 200-day moving average, although they are close to the 50-day average and below the 52-week high, indicating a relatively strong valuation and momentum backdrop.
  • Zacks lowered several longer-term forecasts: Q1 2028 EPS to $2.43 from $2.77, FY2028 EPS to $9.02 from $9.07, Q2 2028 EPS to $2.46 from $2.49, FY2027 EPS to $8.74 from $8.79, Q3 2027 EPS to $1.95 from $2.14 and Q2 2027 EPS to $1.95 from $2.01. These reductions point to some pressure on longer-term earnings expectations.

Overall, the near-term estimate increases and favorable operating commentary appear to be supporting SIGI, but the broad reductions to 2027–2028 forecasts could limit upside and remain a risk for investors focused on longer-term growth.

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