Palomar (PLMR) Surges 7.2%: Is This an Indication of Further Gains?

Palomar (PLMR) shares soared 7.2% in the last trading session to close at $126.32. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.5% gain over the past four weeks.Palomar’s focus on new business, strong premium retention rates for existing business, and renewal of existing policies poise it well for growth. The company aims to be an industry leader in the crop business. PLMR should benefit from its solid product portfolio as well as geographic expansion and rate increases. Net investment income is expected to grow on the back of a higher average balance of investments. PLMR increased the adjusted net income guidance from $260 million to $275 million to $262 million to $278 million. This insurance holding company is expected to post quarterly earnings of $2.13 per share in its upcoming report, which represents a year-over-year change of +21%. Revenues are expected to be $287.44 million, up 47.4% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Palomar, the consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PLMR 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). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Palomar is a member of the Zacks Insurance - Property and Casualty industry. One other stock in the same industry, Allstate (ALL), finished the last trading session 3.5% higher at $239.61. ALL has returned 11.7% over the past month.For Allstate, the consensus EPS estimate for the upcoming report has changed +4.3% over the past month to $4.9. This represents a change of -17.5% from what the company reported a year ago. Allstate currently has a Zacks Rank of #3 (Hold).Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks