Reinsurance Group of America, Incorporated (RGA) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Reinsurance Group (RGA)? Shares have been on the move with the stock up 6.8% over the past month. The stock hit a new 52-week high of $253.34 in the previous session. Reinsurance Group has gained 24% since the start of the year compared to the 7.4% gain for the Zacks Finance sector and the 18.6% return for the Zacks Insurance - Life Insurance industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2026, Reinsurance Group reported EPS of $8.89 versus consensus estimate of $6.51 while it beat the consensus revenue estimate by 0.95%.

For the current fiscal year, Reinsurance Group is expected to post earnings of $29.22 per share on $26.88 in revenues. This represents a 28.61% change in EPS on a 12.28% change in revenues. For the next fiscal year, the company is expected to earn $29.22 per share on $28.2 in revenues. This represents a year-over-year change of 0.02% and 4.91%, respectively.

Valuation Metrics

Though Reinsurance Group has recently hit a 52-week high, what is next for Reinsurance Group? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Reinsurance Group has a Value Score of A. The stock's Growth and Momentum Scores are F and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 8.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 10.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Reinsurance Group an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Reinsurance Group currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Reinsurance Group fits the bill. Thus, it seems as though Reinsurance Group shares could have a bit more room to run in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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