We recently published a list of 15 Highest-Priced Stocks Right Now. In this article, we are going to take a look at where Markel Group Inc. (NYSE:MKL) stands against other highest-priced stocks right now.
2024 was a blockbuster year for the US markets, with the broad market index up 23.31% during the year, after rising 24.2% in the year prior. The two-year gain of 53% is the best performance for the index since the 66% rally between 1997 and 1998.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 12 Best S&P 500 Stocks to Invest in According to Analysts.
The market benefited from declining interest rates, waning inflation, and a resilient economy that avoided recession. While analysts have projected continued growth in 2025, they are also cautious about the rally having gone too far with a correction in the offing this year. Fears of fierce trade wars and geopolitical conflicts could also hurt the stock market.
Over the past few weeks, President Trump has announced and then delayed tariffs on Canada and Mexico, imposed additional 10% tariffs on Chinese goods, and warned the European Union of similar treatment, citing the bloc’s treatment of the U.S. The new administration’s protectionist policies have sparked concerns in the markets about which countries will be next on the American president’s list, leaving several large multinationals unsure of how to plan.
According to analysts at Goldman Sachs Research, index earnings could drop by 2-3% if the US goes ahead with its proposed tariffs. Financial markets have been turbulent amid ongoing tariff negotiations between Washington and its major trade partners. Here is what chief equity strategist, David Kostin, wrote in a recent report.
“If company managements decide to absorb the higher input costs, then profit margins would be squeezed. If companies pass along the higher costs to end customers, then sales volumes may suffer. Firms may try to push back on their suppliers and ask them to absorb part of the cost of the tariff through lower prices.”
Analysts at the investment banking firm have also warned that protectionist policies driving up the value of the U.S. Dollar could further pressure the earnings of several companies, especially those that derive a significant portion of their revenues outside the United States.
Time will tell whether the Trump administration implements the tariffs or reaches a compromise with its trade partners, and how the markets react if the export taxes are imposed. However, if past trends are anything to go by, the broad market index dropped by a total of 5% on days when the U.S., under Trump’s first stint as president, announced tariffs in 2018 and 2019. The index fell by a cumulative 7% when other countries imposed retaliatory tariffs.
Methodology
We went through screeners to identify the highest-priced stocks as of the close of the day on Friday, February 14, 2025 and ranked them in ascending order of their share price.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An executive in a suit walking through an insurance office.
Markel Group Inc. (NYSE:MKL)
Share Price on February 14: $1,868.01
Markel Group Inc. (NYSE:MKL) is a diverse holding company, comprising various businesses, including insurance, building supplies, houseplants, bakery equipment, and more. However, the insurance business sits at the core of the company.
The company has delivered shareholder returns of over 20,000% since its IPO in 1986, with a CAGR of 15%. The share price is up 30% since the beginning of 2023. The stock soared and surpassed the $2,000 mark for the first time this month after the company reported results for fiscal 2024 on February 5.
Net investment income increased 25% during the year. Insurance operations grew on the top and bottom lines and Markel Ventures delivered another strong year, with robust operating income. Despite a slight dip in share price in the days that followed, Markel Group Inc. (NYSE:MKL) is among the highest-priced stocks right now.
However, the management believes that the current share price does not fully reflect the intrinsic value of the company. In an update for shareholders this month, Markel Group Inc. (NYSE:MKL) stated that it would conduct a review of the business, to find ways to simplify the structure, optimize capital allocations, and maximize the value of the company. During this time, MKL will focus its capital deployment on the recently announced $2 billion share repurchase program.
According to Insider Monkey’s database for Q3 2024, 38 hedge funds held a stake in Markel Group Inc. (NYSE:MKL). Polar Capital is the largest investor in the company, with holdings valued at over $133 million, as of December 31, 2024.
Overall, MKL ranks 8th on our list of highest-priced stocks right now. While we acknowledge the potential of conglomerate holding companies, 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 MKL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.