Skyward Specialty Insurance Group, Inc. (SKWD) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Skyward Specialty Insurance (SKWD)? Shares have been on the move with the stock up 34.2% over the past month. The stock hit a new 52-week high of $59.81 in the previous session. Skyward has gained 15.8% since the start of the year compared to the 3.4% gain for the Zacks Finance sector and the 1.4% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, Skyward reported EPS of $1.25 versus consensus estimate of $1.05.For the current fiscal year, Skyward is expected to post earnings of $4.93 per share on $1.9 in revenues. This represents a 23.25% change in EPS on a 33.91% change in revenues. For the next fiscal year, the company is expected to earn $5.51 per share on $2.05 in revenues. This represents a year-over-year change of 11.84% and 7.94%, respectively.Valuation MetricsWhile Skyward has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Skyward has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 12X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 14X versus its peer group's average of 10.4X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Skyward an interesting choice for value investors.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Skyward currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Skyward fits the bill. Thus, it seems as though Skyward shares could have potential in the weeks and months to come.How Does SKWD Stack Up to the Competition?Shares of SKWD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is United Fire Group, Inc (UFCS). UFCS has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of D.Earnings were strong last quarter. United Fire Group, Inc beat our consensus estimate by 33.33%, and for the current fiscal year, UFCS is expected to post earnings of $4.69 per share on revenue of $1.53 billion.Shares of United Fire Group, Inc have gained 18.5% over the past month, and currently trade at a forward P/E of 11.2X and a P/CF of 10.16X.The Insurance - Property and Casualty industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SKWD and UFCS, even beyond their own solid fundamental situation.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