10 Best Property & Casualty Insurance Stocks to Buy

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1) Mercury General Corporation (NYSE:MCY)

 Average Upside Potential: 31.58%

Mercury General Corporation (NYSE:MCY) is the specialty writer of all risk classifications of automobile insurance. It is an agency writer of private passenger automobile insurance.

Mercury General Corporation (NYSE:MCY) released its 2Q 2024 financial results, with revenues coming at US$1.30 billion, exhibiting a YoY increase of ~21%. However, the company’s revenue figure fell short of Wall Street estimates by ~4.7%. The company’s net income was US$62.6 million, crushing analysts’ estimates by 41%.

Analysts believe that Mercury General Corporation (NYSE:MCY)’s revenue will grow at ~11% p.a. on average over the upcoming 2 years. This compares to the growth of ~5.1% expected for the Insurance industry in the US. The company adopted remediation plans and underwriting actions, which have supported it in reducing losses throughout its various insurance portfolios. In 2Q 2024, the company has seen an improvement in its combined ratio from 110.1% in 2Q 2023 to 98.9% in 2Q 2024.

Over the past month, the company’s stock price increased by over ~9%. Blair William & Co. IL purchased a new stake in shares of Mercury General Corporation (NYSE:MCY) in the first quarter valued at ~$200,000.

At the end of Q1 2024, 20 hedge funds tracked by Insider Monkey were long Mercury General Corporation (NYSE:MCY), up from 9 in the preceding quarter.

While we acknowledge the potential of Mercury General Corporation (NYSE:MCY) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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