Everest Group Outlook - Technical Deterioration Despite Strong Fundamentals

1. Market Snapshot

Headline Takeaway: While Everest Group (EG) holds strong fundamentals, technical indicators show signs of weakness with an internal diagnostic score of 2.73.

2. News Highlights

Recent News:

• May 30, 2025 - Fidelis Insurance Group Sponsors New Catastrophe Bond: A $90 million bond covers natural disasters across North America, Japan, and other regions. This could indirectly affect Everest Group's sector by altering market sentiment in specialty insurance.
• May 31, 2025 - Marsh McLennan CEO on Reducing the Insurance Protection Gap: The CEO highlights the importance of bridging underinsurance gaps, which could influence Everest Group's competitive landscape as it may need to enhance offerings to stay relevant.
• May 30, 2025 - American Coastal Insurance Boosts Reinsurance Program: This move signals increased confidence in the catastrophe reinsurance sector, potentially creating a ripple effect on Everest Group's peers and its own strategy.

3. Analyst Views & Fundamentals

Analyst Ratings: The average rating score is 3.33, while the performance-weighted score is 3.14. Analysts show consistent ratings, but the stock has seen a recent 2.19% rise in price, indicating a mismatch between expectations and actual market behavior.

• ROA (Return on Assets): 1.12% with an internal diagnostic score of 1. This suggests poor asset utilization.
• ROE (Return on Equity): 4.53% with an internal diagnostic score of 1. This indicates weak profitability for equity holders.
• NPM (Net Profit Margin): 15.14% with an internal diagnostic score of 2. While better than ROA and ROE, it still points to room for improvement.
• Operating Revenue Growth (YoY): 421.60% with an internal diagnostic score of 3. This is a strong positive signal, showing significant top-line expansion.

4. Money-Flow Trends

Big-Money Inflows: The overall inflow ratio is 52.80%, indicating that large investors are showing interest in Everest Group. This is supported by inflow ratios across all categories (Small, Medium, Large, and Extra-large) trending positively.

Conclusion: Retail and institutional investors appear to be aligned in their bullish stance on EG, although technical indicators suggest caution.

5. Key Technical Signals

Internal Diagnostic Scores (0-10):

• MACD Death Cross: Score of 6.09. This is a strong bearish signal, indicating a potential downturn.
• MACD Golden Cross: Score of 2.14. This is a weak bullish signal, not enough to counter the bearish momentum.
• WR Overbought: Score of 2.81. This indicates overbought conditions, which could lead to a correction.
• Ex-Dividend Date and Dividend Record Date: Both have scores of 1. These events are traditionally bearish and may amplify the downward trend.

Recent Chart Patterns:

• September 12, 2025: WR Overbought signal appeared.
• September 11, 2025: WR Overbought and MACD Golden Cross signals.
• September 3, 2025: Ex-Dividend Date and Dividend Record Date signals.
• September 5, 2025: WR Oversold signal.
• September 8, 2025: MACD Death Cross signal.

Trend Summary: With five bearish indicators versus zero bullish ones, the technical outlook is weak. Investors are advised to avoid the stock due to its deteriorating momentum and high risk of further declines.

6. Conclusion

Actionable Takeaway: Despite solid fundamental metrics like strong operating revenue growth, Everest Group faces significant technical headwinds. Investors should consider waiting for a clearer reversal signal before entering the stock. For now, it's better to watch and wait as the internal diagnostic score stands at 2.73, signaling caution.