Returns Breakdown
0.13
Return on Assets
0.17
Return Capital
0.36
Return on Sales
| Return on Assets | 0.13 | |
| Return on Equity | 0.53 | |
| Return Capital | 0.17 | |
| Return on Sales | 0.36 |
Our recent forecast of RLI (USA Stocks:RLI)
 | By Gabriel Shpitalnik | Macroaxis Story |
Investors looking to uncover potential opportunities might want to consider shorting RLI Corp (USA Stocks:RLI). With an EPS estimate next year of 5.36, it appears the company's earnings may not be as robust as some investors would like. Furthermore, the company's mean deviation of 0.9744 suggests a high degree of volatility, which could be risky for those with a low tolerance for risk. Additionally, the company's shares short prior month stand at 823.9K, indicating a bearish sentiment among investors. This could be a sign that the market is anticipating a decrease in the company's stock price, which would make shorting the stock a potentially profitable move. On the other hand, those invested in American Financial may want to consider divesting from the company. While the decision to divest should always be based on a comprehensive analysis of a company's financial health and market conditions, these data points suggest that now may be a good time to reconsider your investment in RLI Corp and American Financial.
Additional examination
RLI Corp is currently undervalued, trading at $146.42 per share, with modest growth projections in the future. A significant majority, over 83.0%, of RLI Corp's shares are held by institutional investors. This institutional ownership of RLI Corp includes equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, and other large entities that manage funds on behalf of others. For a comprehensive analysis of RLI, including its current ownership structure, please refer to our latest report.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
RLI Corp (NYSE: RLI), a player in the Financial Services sector, specifically in Property & Casualty Insurance, is currently under the spotlight. With an EPS estimate of $5.36 for the next year and $4.32 for the current year, the company shows potential for growth. However, the PEG ratio stands at a high 3.82, indicating that the stock may be overvalued. The company's shares have seen a 52-week high of $149.0152 and a low of $112.3522, with the 50-day MA at $134.6826 and the 200-day MA at $133.7593. Despite the analyst overall consensus being a 'Hold', there is one strong buy recommendation. The Wall Street target price is set at $153.75, with the highest estimated target price being $170. The short ratio stands at 4.19, with 690.5K shares short, a decrease from the prior month's 823.9K. Given these factors, shorting RLI Corp may present potential opportunities for savvy investors. However, a careful analysis of the market conditions and company performance is crucial before making such a decision. At present, RLI Corp's Earnings Before Tax are showing an upward trend compared to previous years. The company's current Calculated Tax Rate is projected to rise to 22.10, while Average Assets are expected to decrease to less than 4.4 billion. In this article, we will explore RLI Corp as a potential addition to your existing portfolio. We will focus on why it could be a game-changer for traders invested in RLI Corp.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as RLI Corp. Your research has to be compared to or analyzed against RLI Corp's peers to derive any actionable benefits. When done correctly, RLI Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in RLI Corp.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as RLI Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for RLI Corp
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of RLI Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is RLI Corp's Liquidity
RLI Corp financial leverage refers to using borrowed capital as a funding source to finance RLI Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RLI Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to RLI Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of RLI Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between RLI Corp's total debt and its cash.
RLI Corp Gross Profit
RLI Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing RLI Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show RLI Corp Gross Profit growth over the last 10 years. Please check RLI Corp's gross profit and other fundamental indicators for more details.
An Additional Perspective On RLI Corp
RLI Corp exhibits very low volatility with skewness of -0.04 and kurtosis of -0.72. However, we advise investors to further study RLI Corp technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure RLI Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact RLI Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
RLI Corp (NYSE:RLI), a player in the financial services sector, specifically insurance, has been under the microscope recently. With a market capitalization of $6.14B and a net asset value of $4.77B, the company's financial health appears robust.However, a PEG ratio of 3.82X and a Price to Earnings ratio of 20.64X suggest that the stock may be overvalued. The company's operating margin stands at a meager 0.25%, and its five-year return is just 1.07%, indicating sluggish growth. Additionally, the company's short ratio of 4.19X and short percent of 0.0235 suggest that a significant number of investors are betting against the stock, with 690.49K shares currently shorted. Despite these concerns, RLI Corp has a healthy current ratio of 1.43X, indicating its ability to meet short-term obligations. The company's EPS estimate for the current year is 4.32, and it's expected to rise to 5.36 next year, suggesting potential earnings growth. However, considering the high valuation metrics and low operating margin, investors may want to consider shorting RLI Corp. The company's low growth and high short interest could lead to downward pressure on the stock price. Therefore, divesting from American Financial and shorting RLI Corp could be a potential opportunity for savvy investors. .
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of RLI Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.