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Top 10 Insurance Stocks To Buy For 2019

Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive”, and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced stocks.

When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.

Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these tech companies stick out right now:

Top 10 Insurance Stocks To Buy For 2019: Johnson & Johnson(JNJ)

Few companies have the pedigree to compete against Johnson & Johnson. A behemoth in personal care, pharmaceuticals, and medical devices, the company has a well-diversified stream of revenue. It may be the ultimate defensive stock, solid in a portfolio in both good times and bad, and sporting a history of dividend increases that make it a Dividend Aristocrat.

Almost half of Johnson & Johnson’s sales come from its pharmaceutical business, which in the first quarter recorded another strong performance, with revenues jumping 20% year over year as both new products like Darzalex and Imbruvica as well as those in its core such as Zytiga and Stelara were well received.

Pills spilled from a prescription bottle.


On the consumer products stage, beauty products such as Aveeno and Neutrogena helped drive sales up 5% and medical device sales were up 7.5% on the strength of its Acuvue contact lens business.

Johnson & Johnson has been around for 130 years and its track record over that time makes it a pretty sure bet it will be around for another 50 as a leading consumer products and pharmaceutical giant. At 23 times trailing earnings and 14 times analyst estimates for 2018, you’re not going to find Johnson & Johnson’s stock in the discount bin. But it is a solid performer with a better than solid reputation that continues to have growth prospects in all its segments.

This is a company investors can feel confident that even if it does stumble here and there over the next five decades, it will bounce back stronger than ever.

Top 10 Insurance Stocks To Buy For 2019: Axon Enterprise, Inc.(AAXN)

Axon Enterprise is the leader in Tasers and body cameras, which are critical tools for law enforcement. You can see below that these products have driven tremendous growth over the past decade and that trend should continue. In 2018, the company expects to introduce a new vehicle camera called Axon Fleet, a holster called Signal Sidearm that will turn on nearby body cameras when a weapon is pulled, and a records management system that could become an everyday tool for police officers. These products increase Axon Enterprise’s addressable market to $6.5 billion, according to management, so current revenue of $323.8 million is just scratching the surface of its potential.

What Axon Enterprise hasn’t delivered is much in the way of profitability. That should also change this year as management focuses on increasing margins across the business. Guidance is for a 300- to 400-basis-point increase in operating margis to go along with 16% to 18% revenue growth. Even with a forward P/E ratio of about 100, I think this is a company that can grow profitably for many years to come.

Top 10 Insurance Stocks To Buy For 2019: FGL Holdings(FG)

FGL is a holding company offering fixed annuities and life insurance products, forming after the merger of CF Corp. and Fidelity & Guaranty Life was completed late last year. The stock is sporting both a Zacks Rank #1 (Strong Buy) and an “A” grade for Value in our Style Scores system. FG is trading with a P/E of 8.8, which marks a discount to its industry average. Value investors will also love its P/B ratio of just 1.0. The company reports its latest results next week, and earnings estimates for the quarter are trending upward into the announcement date.

Top 10 Insurance Stocks To Buy For 2019: Wintrust Financial Corporation(WTFC)

Wintrust Financial also had a positive period that helped lift company shares ahead of Tuesday’s action.

The Rosemont, Illinois-based company said its net income amounted to $82 million, or $1.40 per diluted common share for the first quarter of 2018, topping the year-ago quarter’s total of $58.4 million, or $1 per diluted share.

The figure was 12 cents better than analysts’ expectations of $1.28 per share. Revenue was also above the mark for Wintrust Financial at $310.76 million, beating the Wall Street consensus of $301.44 million.

The company’s total assets surged to $28.5 billion, marking a $541 million gain for the period. Total loans also increased by $421 million for Wintrust Financial for the quarter.

WTFC stock gained 2.4% after market close.

Top 10 Insurance Stocks To Buy For 2019: HP Inc.(HPQ)

Forming as a result of the split of Hewlett-Packard Company in 2015, HP Inc. handles the brand’s PC and printing products. The company is attracting positive analyst sentiment after a solid earnings beat and now sports a Zacks Rank #2 (Buy). Earnings and revenue are now expected to improve by 17% and 9%, respectively, in the current fiscal year. The stock also has an “A” grade for Value and is trading at an attractive 11.1x forward 12-month earnings. HPQ also has plenty to offer income investors with its 2.6% annual dividend.