10 Most Undervalued Small-Cap Stocks To Invest In

7. Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD)

Market Cap: $2 billion

Forward P/E: 15

Number of Hedge Fund Holders: 26

Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) is a specialty insurance company that provides commercial property and casualty (P&C) solutions and products on an admitted and non-admitted basis, predominantly in the US. It specializes in industry solutions, healthcare professional liability, medical stop-loss, management and professional liability, specialty property and liability, programs and captive solutions, and surety. The company’s operations are divided into eight divisions: Accident & Health, Captives, Global Property and Agriculture, Industry Solutions, Professional Lines, Programs, Surety, and Transactional E&S.

Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) boasts disciplined pricing and risk management that can protect its capital in the long term. In 2023, many property and casualty insurers posted underwriting losses with a combined ratio of 101.5%; Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) delivered a 90.7% ratio, showcasing its capability to drive consistent profits and reinforcing its investment appeal.

The company has strong profitability and a book value per share growth of 23% annually over the past three years. If its book value continues to grow at a conservative 16% per year, the company’s stock could reach $107.23 by 2029, representing a 19% CAGR from current levels. Discipline execution, strong management, and industry tailwinds lend Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) significant upside potential.