16 Best 52-Week Low Stocks To Buy Now According to Short Sellers

7. Selective Insurance Group Inc. (NASDAQ:SIGI)

Short Interest as % of Shares Outstanding: 2.33%

Selective Insurance Group Inc. (NASDAQ:SIGI) is a leading regional property and casualty insurance provider, specializing in commercial, personal, and excess & surplus lines. The company operates through a network of independent agents, offering tailored insurance solutions with a focus on risk management and superior customer service. With a disciplined underwriting approach and strong financial stability, SIGI balances profitability with growth.

Selective Insurance Group Inc. (NASDAQ:SIGI) has been underperforming for the last 12 months, as the company announced declining retention and a weakening combined ratio. The performance was further negatively affected by inflationary pressures and losses from large-scale storms. During a difficult macro environment, smaller companies are the most affected ones, and SIGI certainly can’t operate at the same level of excellence and recession resistance as leaders like PGR. Arguments in favor of SIGI are that it has been a long-term outperformer of the overall market in secular bull markets, which confirms its ability to execute. Management announced that it remains comfortable with the quality of the underwriting portfolio and rate increases will be the main priority over the following years – as inflationary pressure subsides, SIGI is well-positioned to recover its profitability with subsequent rate increases. It appears that the bears’ reluctance to short SIGI confirms the short-term nature of the headwinds faced by the company.