Why Reinsurance Group (RGA) is a Top Growth Stock for the Long-Term

Zacks Investment Research highlights Reinsurance Group of America (RGA) as a potential growth stock, assigning it a Zacks Rank of #3 (Hold) but noting a VGM Score of A and a Growth Style Score of B. The company's fiscal year earnings are projected to grow by 1.9%, and the consensus estimate for fiscal 2025 has risen by $0.07 to $22.99 per share following upward revisions by three analysts, with RGA demonstrating a historical average earnings surprise of 7.9%.

Analysis

Reinsurance Group of America (RGA) presents a nuanced investment profile according to Zacks Investment Research. While carrying a Zacks Rank of #3 (Hold), RGA exhibits strong underlying characteristics, evidenced by a VGM Score of A and a Growth Style Score of B. The company is projected to achieve year-over-year earnings growth of 1.9% for the current fiscal year. More significantly for forward-looking valuation, three analysts have revised their earnings estimates upward for fiscal 2025 within the last 60 days, leading to a $0.07 increase in the Zacks Consensus Estimate to $22.99 per share. This positive revision momentum, coupled with RGA's historical average earnings surprise of 7.9%, suggests a consistent ability to exceed expectations. The combination of a high VGM score and a B for Growth, even with a Hold rating, indicates that RGA possesses attractive value, growth, and momentum attributes that could appeal to growth-oriented investors looking for long-term potential.

Key Decisions for Investors

• Investors might consider RGA for its growth potential, supported by its B Grade for Growth and A Grade for VGM, despite its current Zacks Rank #3 (Hold) status.
• The upward revisions in fiscal 2025 earnings estimates and a consistent history of positive earnings surprises warrant attention, suggesting potential for earnings outperformance.
• Given the Hold rating, investors should closely monitor subsequent earnings estimate revisions and company performance, as improvements could lead to an upgraded Zacks Rank and further stock appreciation.