Palomar (PLMR), an insurance holding company, demonstrates a solid history of beating earnings estimates with an average surprise of 8.89% over the past two quarters. The company has a positive Earnings ESP of +1.89% combined with a Zacks Rank #2 (Buy) rating, suggesting another earnings beat is likely in the near term.

The article explains how investors can use the Zacks Earnings ESP (Expected Surprise Prediction) metric to identify stocks likely to beat earnings expectations. The ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, and when combined with a Zacks Rank of #3 or better, has historically produced 28.3% annual returns. Two finance stocks highlighted as examples are Palomar (PLMR) with a +1.89% ESP and a #2 Buy rating, and MSCI with a +0.26% ESP and a #3 Hold rating.

Palomar Holdings (PLMR), a Delaware-incorporated insurance holding company, has been highlighted as a stock to watch with a Zacks Rank #2 (Buy) rating and a VGM Score of B. The company demonstrates strong growth potential with a Growth Style Score of B and forecasted year-over-year earnings growth of 28.9% for the current fiscal year. Three analysts revised earnings estimates upward in the last 60 days, with the Zacks Consensus Estimate increasing to $10.13 per share, and the company boasts an average earnings surprise of +13%.

Zacks recommends Palomar (PLMR) as a top growth stock, citing its strong earnings growth of 28.9% (vs. 5% industry average), exceptional cash flow growth of 68.1% (vs. 20.7% industry average), and positive earnings estimate revisions. The company holds a Zacks Rank #2 (Buy) and Growth Score of B, positioning it as a potential outperformer for growth investors.

Cincinnati Financial Corporation (CINF) demonstrates strong performance with P&C net earned premiums rising 6.3% to $2.6 billion in Q2 2026, driven by disciplined underwriting and pricing. The company benefits from growth in Commercial Lines, Excess & Surplus Lines (up 8%), and Cincinnati Re (up 16%), while net investment income increased 12%. However, risks include catastrophe sensitivity and rising loss costs from social inflation and claim severity.

Lemonade Inc. (LMND) demonstrates robust premium growth of 32.5% year-over-year to $1.43 billion and improving profitability metrics through its AI-powered platform. The company expects EBITDA profitability by Q4 2026 and maintains $1.2 billion in cash. However, risks include vulnerability to catastrophic losses and elevated customer acquisition spending that could pressure margins.

Skyward Specialty Insurance Group (SKWD) is expanding its autonomous vehicle (AV) insurance offerings through ibott, acquired as part of Apollo in January 2026. The move leverages ibott's specialized AV underwriting expertise combined with Skyward's distribution and market access. Q2 2026 results showed managed premiums up 17.5% to $1.1 billion and fee-generating GWP up 28.8%, positioning the company to capture emerging opportunities in the evolving AV insurance market.

Palomar Holdings (PLMR) reported Q2 2026 earnings that beat consensus estimates with operating income of $2.36 per share (up 34.1% YoY) and revenues of $307.7 million (up 57.9% YoY). Strong net earned premiums and investment income drove results, though elevated losses and underwriting expenses pressured margins. The company initiated a quarterly dividend of $0.45 per share and provided 2026 guidance of $270-$280 million adjusted net income. Despite strong fundamentals, shares have underperformed the S&P 500 over the past month.

Palomar Holdings, a specialty insurer focusing on high-risk niches like earthquakes and floods, posted its strongest quarter with 42% growth in gross written premiums to $629.8 million and adjusted net income of $63 million. The company acquired Gray Surety to expand into surety bonds, funded by $450 million in new debt. While analysts remain bullish with a consensus Moderate Buy rating and 30% upside target, the rising combined ratio and increased leverage present risks.

Palomar Holdings, Inc. has agreed to acquire The Gray Casualty & Surety Company for $300 million in cash, expected to close in the first half of 2026. The acquisition aims to enhance Palomar's surety franchise and expand its market presence.

Palomar Holdings, Inc. has agreed to acquire The Gray Casualty & Surety Company for $300 million in cash, expected to close in the first half of 2026. The acquisition aims to enhance Palomar's surety franchise and expand its market presence.

Moody Aldrich Partners LLC completely sold its entire 53,211 share position in Palomar Holdings for an estimated $8.21 million during Q3 2025, reducing its stake to zero, likely as part of routine portfolio rebalancing.