May 10, 2022
The company remains a strong value stock that will withstand the current recession.
Hold Reinsurance as the price stabilises between $107 and $118.
Reinsurance Group of America (MUN:RGPB) reported growth in Q1 profits against lower revenue. The share lost 1.26% following the news. Last week, the stock gained 10.60% in anticipation of the Q1 earnings. The Reinsurance Group remains an attractive value stock.
Reinsurance Group is likely to report growth in revenues and incomes in the coming few quarters. Though growth may be slow, the recent increases in interest rates will result in higher earnings. The stock is therefore expected to remain highly resilient.
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Analysis of the price also indicates that it has been highly stable. The lowest price over the last year is $94 while the highest is at $130. At the levels, the price to sales ratio stands at 0.50, while the price to book is 0.87. In the last fiscal year, the stock had an EPS of 1.13, leading to a PE of 13.45. The metrics show a fundamentally strong firm.
Reinsurance Group remains stable between $107 and $118
Source – TradingView
Price chart analysis shows support at $100. The resistance remains at $132. The MACD shows that the Reinsurance Group is subtly bullish. Momentum, however, remains low.
The price is projected to remain stable in the region between $107 and $118. Low momentum means that it is less likely to be affected by huge fluctuations in the market. The characteristics make the stock attractive to hold during a declining market.
Reinsurance Group remains among a few bullish stocks. The recent rise in interest rates is likely to benefit the firm. This analysis recommends holding the stock whose prices will remain stable between $107 and $118.
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