Stock Analysis | Everest Group Outlook - A Weak Technical Picture Amid Mixed Fundamentals

1. Market Snapshot

Headline Takeaway: Everest Group (EG) is showing a weak technical outlook with bearish signals dominating, though its fundamentals and fund flows suggest some potential for short-term activity.

The stock is currently in a falling trend (-0.80%), with a mixed analyst consensus and a modestly positive money flow pattern, indicating varied investor sentiment. However, the internal diagnostic technical score of 3.71 suggests traders should consider avoiding this name for now.

2. News Highlights

Here are some of the latest stories shaping the insurance sector and indirectly influencing Everest Group:

• Fidelis Insurance Group launches a new catastrophe bond (May 30, 2025) to cover natural disasters in multiple regions. This kind of move reflects growing investor interest in risk-mitigation tools, which may provide tailwinds for Everest Group if similar products are in development.
• Marsh McLennan CEO discusses reducing the insurance protection gap (May 31, 2025), highlighting the importance of community partnerships. This could indirectly benefit Everest Group as broader sector trends gain momentum.
• American Coastal Insurance renews its reinsurance program (May 31, 2025). Such moves demonstrate a stabilizing trend in the reinsurance sector, potentially improving market sentiment for companies like Everest Group.

3. Analyst Views & Fundamentals

Analyst Ratings:

• Average rating (simple mean): 3.33
• Weighted rating (performance-weighted): 3.14
• Consistency: Consistent – All three analysts (Citigroup, Keefe, Bruyette & Woods, and Wells Fargo) have rated EG as either 'Neutral' or 'Buy' in the past 20 days.

However, the current price is falling, and the market's expectations are relatively neutral, creating a mismatch between analyst expectations and actual performance.

Key Fundamental Values and Scores:

• Net Income / Revenue: 47.31% (Score: 3.00)
• Operating Revenue (YoY Growth Rate): 420.37% (Score: 3.00)
• ROA: 1.12% (Score: 1.00)
• ROE: 4.53% (Score: 1.00)
• Cash-to-Market Value: 128.54% (Score: 6.13)
• Accounts Receivable Turnover Ratio: 13.08 (Score: 3.00)
• Fixed Assets Turnover Ratio: 1,156.06 (Score: 3.00)
• Net Profit Margin (NPM): 15.14% (Score: 3.00)
• GPOA: 10.01% (Score: 2.00)
• Total Profit (YoY Growth Rate): -36.06% (Score: 1.00)

The fundamental score of 6.13 is decent, driven by strong cash positions and revenue growth, but weak ROA and ROE suggest underlying operational challenges. The low score for total profit growth (-36.06%) is a red flag, indicating declining profitability.

4. Money-Flow Trends

Everest Group is experiencing positive money flow across all categories:

• Overall Inflow Ratio: 51.96%
• Block (Large Institutional) Inflow Ratio: 52.07%
• Small Retail Inflow Ratio: 50.85%
• Large Inflow Ratio: 52.17%
• Extra-Large Inflow Ratio: 52.01%

With a money flow score of 7.95, the stock is attracting both big-money players and retail investors, which is a positive sign despite the weak technical outlook. This suggests there may be short-term buying interest, though fundamentals and technicals are not fully aligned.

5. Key Technical Signals

Everest Group’s technical picture is weak, with 4 bearish indicators vs. 1 bullish over the last five days. Here are the key signals:

• Bearish Engulfing (Score: 7.65): A strong bearish candlestick pattern suggesting a potential reversal in momentum.
• WR Overbought (Score: 2.81): A neutral but slightly bearish signal indicating the stock may be overextended.
• Marubozu White (Score: 3.05): A bullish pattern but with low conviction based on our internal diagnostic score.
• Shooting Star (Score: 6.75): A bearish reversal pattern, suggesting a potential top in the near term.
• Ex-Dividend and Dividend Record Dates (Score: 1 each): Strongly bearish events historically, with low win rates and negative average returns.

Recent Chart Patterns (by date):

• 2025-08-22: Bearish Engulfing
• 2025-08-21: WR Overbought, Marubozu White
• 2025-09-03: Ex-Dividend Date, Dividend Record Date
• 2025-08-29: Marubozu White, Shooting Star
• 2025-08-20: WR Overbought, Marubozu White

The key insight: The technical side is weak, and it is suggested to avoid it. The bearish signals are overwhelming, and the lack of strong bullish momentum indicates a high-risk environment for new entries.

6. Conclusion

Everest Group appears to be in a tricky spot. While fundamentals and money flows suggest some underlying support, the technical picture is clearly bearish with 4 out of 6 indicators leaning negative and the technical score of 3.71 indicating a weak trend.

Actionable Takeaway: Investors should consider avoiding Everest Group for now due to the dominant bearish signals and low confidence in the near-term direction. However, keep an eye on upcoming earnings and any strategic moves in the reinsurance space, which could provide new momentum.