RLI

RLI Corp. received an upgrade to Zacks Rank #2 (Buy) based on upward revisions in earnings estimates. The specialty insurance company has seen its Zacks Consensus Estimate increase 9.2% over the past three months. The upgrade positions RLI in the top 20% of Zacks-covered stocks, suggesting potential near-term stock price appreciation driven by improving business fundamentals and institutional buying pressure.

RLI Corp. reported Q3 2026 revenue of $471.61 million (+5% YoY), beating consensus estimates by 1.07%. EPS of $0.86 significantly exceeded the $0.58 estimate (+48.28% surprise).

Key metrics showed mixed results: net premiums earned of $424.91 million beat estimates, net investment income grew 13.1% YoY, but underwriting income fell short of analyst expectations. The stock has a Zacks Rank #3 (Hold) rating.

RLI Corp. reported quarterly earnings of $0.86 per share, significantly beating the consensus estimate of $0.58 per share, representing a 48.28% earnings surprise. Revenues also exceeded expectations at $471.61 million.

However, the stock has underperformed the S&P 500 year-to-date, declining 4.6% versus the market's 11.9% gain. The company received a Zacks Rank #3 (Hold) rating, suggesting near-term performance in line with the market.

Cincinnati Financial and RLI are highlighted as Dividend Kings with 66 and 51 years of consecutive annual dividend increases, respectively. Cincinnati Financial offers a 2.3% yield but has higher equity exposure (40%) making it vulnerable in bear markets. RLI, with a 1.3% yield and 20% equity exposure, appears more attractively valued at a P/B ratio of 2.9x versus its 5-year average of 4x, and has a history of substantial special dividends.

Selective Insurance is expected to report Q3 2026 earnings on October 22 with consensus EPS of $1.91 (up 9.1% YoY) and revenues of $1.35 billion (up 0.1% YoY). The company has a positive Earnings ESP of +3.28% combined with a Zacks Rank #3, suggesting it will likely beat consensus estimates. The company has beaten EPS estimates in 2 of the last 4 quarters, with the most recent quarter delivering a +13.37% surprise.