PLMR

Palomar (PLMR), an insurance holding company, demonstrates a solid history of beating earnings estimates with an average surprise of 8.89% over the past two quarters. The company has a positive Earnings ESP of +1.89% combined with a Zacks Rank #2 (Buy) rating, suggesting another earnings beat is likely in the near term.

Palomar Holdings (PLMR), a Delaware-incorporated insurance holding company, has been highlighted as a stock to watch with a Zacks Rank #2 (Buy) rating and a VGM Score of B. The company demonstrates strong growth potential with a Growth Style Score of B and forecasted year-over-year earnings growth of 28.9% for the current fiscal year. Three analysts revised earnings estimates upward in the last 60 days, with the Zacks Consensus Estimate increasing to $10.13 per share, and the company boasts an average earnings surprise of +13%.

Zacks recommends Palomar (PLMR) as a top growth stock, citing its strong earnings growth of 28.9% (vs. 5% industry average), exceptional cash flow growth of 68.1% (vs. 20.7% industry average), and positive earnings estimate revisions. The company holds a Zacks Rank #2 (Buy) and Growth Score of B, positioning it as a potential outperformer for growth investors.

Aon plc is set to report Q3 2026 results on Oct. 28 with expected EPS of $3.34 and revenues of $4.08B. While Commercial Risk, Health, and Reinsurance segments show growth potential, an earnings beat is uncertain due to negative Earnings ESP (-0.80%) and Zacks Rank #4 (Sell). High operating expenses exceeding $3.2B and a significant 16.1% revenue decline in Wealth Solutions due to weak U.S. advisory demand are headwinds.

The Hartford Insurance Group (HIG) is expected to report Q3 2026 earnings of $3.15 per share on October 26, representing a 16.7% year-over-year decline despite a 3.3% revenue increase to $5.3 billion. While the Personal Insurance combined ratio is expected to improve to 87.9%, the company faces headwinds from higher operating costs and declining auto and homeowners' policies. An earnings beat is predicted based on a positive Earnings ESP of +1.95% and Zacks Rank #3.

Globe Life Inc. (GL) strengthens its growth outlook through premium expansion, AI adoption, and rising investment income. The company expects 2026 premium growth of 6.5-7%, with health premiums projected to rise 14-16%. GL anticipates 7% excess investment income growth and plans $670-$700 million in buybacks, supported by a solid capital position.

The article explains how to identify finance stocks likely to beat quarterly earnings expectations using Zacks' Earnings ESP (Expected Surprise Prediction) filter. It demonstrates that combining positive ESP with a Zacks Rank #3 or better has historically resulted in positive earnings surprises 70% of the time with 28.3% average annual returns. Two example stocks highlighted are T. Rowe Price and Palomar, both with positive ESP figures ahead of their upcoming earnings reports.

Unum Group projects 4-7% premium growth and adjusted operating EPS of $8.60-$8.90 in 2026, supported by strong persistency, higher sales, and digital investments. The company plans $1 billion in buybacks but faces headwinds from rising claims costs and declining investment income. Comparable industry players NMI Holdings, Palomar Holdings, and Arch Capital also show positive earnings momentum.

Cincinnati Financial Corporation (CINF) demonstrates strong performance with P&C net earned premiums rising 6.3% to $2.6 billion in Q2 2026, driven by disciplined underwriting and pricing. The company benefits from growth in Commercial Lines, Excess & Surplus Lines (up 8%), and Cincinnati Re (up 16%), while net investment income increased 12%. However, risks include catastrophe sensitivity and rising loss costs from social inflation and claim severity.

Lemonade Inc. (LMND) demonstrates robust premium growth of 32.5% year-over-year to $1.43 billion and improving profitability metrics through its AI-powered platform. The company expects EBITDA profitability by Q4 2026 and maintains $1.2 billion in cash. However, risks include vulnerability to catastrophic losses and elevated customer acquisition spending that could pressure margins.

Skyward Specialty Insurance Group (SKWD) is expanding its autonomous vehicle (AV) insurance offerings through ibott, acquired as part of Apollo in January 2026. The move leverages ibott's specialized AV underwriting expertise combined with Skyward's distribution and market access. Q2 2026 results showed managed premiums up 17.5% to $1.1 billion and fee-generating GWP up 28.8%, positioning the company to capture emerging opportunities in the evolving AV insurance market.