Stock of the Day

September 28, 2022

Axis Capital (AXS)

$98.76
-$0.76 (-0.8%)
Market Cap: $7.26B

About Axis Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.

Today's Trend

Axis Capital Holdings Limited (NYSE: AXS) shares increased despite a series of negative analyst revisions. The latest news is more cautionary for the company’s future earnings outlook than for its current operating performance.

  • Axis Capital’s preferred stock, AXS PFD E, was highlighted for offering a competitive yield relative to other insurance companies, which may support investor interest in the company’s preferred securities. The report has less direct impact on common shares. AXS PFD E Offers Competitive Yield Versus Other Insurance Companies
  • Axis Capital’s shares have increased while trading near $101, but remain below their 50-day and 200-day moving averages. The stock’s low valuation—approximately 7.2 times earnings—and strong profitability may be providing some support, although recent earnings expectations have weakened.
  • Zacks Research downgraded AXS from “Hold” to “Strong Sell” and lowered its earnings forecasts across multiple periods. Estimates were reduced for Q3 2026 to $2.87 per share from $3.38, FY2026 to $12.58 from $13.54, FY2027 to $13.40 from $13.64, and FY2028 to $14.45 from $14.62. Additional cuts included Q1 2027 to $3.20, Q2 2027 to $3.33, Q3 2027 to $3.28, and Q1 2028 to $3.39 per share. The broad-based reductions signal concern about Axis Capital’s earnings trajectory and could pressure the common stock. Zacks Research Decreases Earnings Estimates for Axis Capital

The latest revisions follow Axis Capital’s most recent quarterly report, in which revenue exceeded expectations but earnings per share missed consensus estimates. Investors appear to be balancing the company’s low valuation and solid profitability against deteriorating analyst forecasts and the new “Strong Sell” rating.

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