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Should You Retain Markel Group Stock in Your Portfolio?
Markel Group Inc. (NYSE: MKL) has been gaining momentum on the back of new business volume, strong retention levels, an improving rate environment, higher interest income on cash equivalents, strategic buyouts and favorable growth estimates.
Growth Projections
The Zacks Consensus Estimate for Markel Group's 2024 revenues is pegged at $14.95 billion, implying a year-over-year improvement of 4.6%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 21% and 5.6%, respectively, from the corresponding 2024 estimates.
Earnings have grown 46.2% in the past five years, better than the industry average of 14.4%.
Earnings Surprise History
Markel Group has a decent earnings surprise history. It beat estimates in two of the last four quarters and missed twice, the average being 33.41%.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2024 and 2025 has moved 2% and 1.9% north, respectively, in the past 60 days, reflecting analyst optimism.
Zacks Rank & Price Performance
MKL currently carries a Zacks Rank #3 (Hold). The stock has gained 11.2% against the industry's decline of 5.6% year to date.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Markel Group's trailing 12-month ROE was 11.2%, up 310 basis points year over year. ROE reflects its efficiency in using its shareholders' funds.
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