ORI Outperforms Industry, Trades at a Discount: How to Play the Stock

Shares of Old Republic International Corporation ORI have gained 1.8% in the past year against the industry’s decline of 10.5%.

ORI has outperformed its peers, CNO Financial Group, Inc. CNO, MetLife, Inc. MET and Markel Group Inc. MKL in the past year. CNO and MET have lost 3.5% and 15%, respectively, in the past year. Shares of MKL have gained 0.9% in the past year.

Image Source: Zacks Investment Research

With a market capitalization of $9.81 billion, the average number of shares traded in the last three months was 2 million.

ORI’s Attractive Valuation

The stock is trading at a discount to the industry. Its price-to-book value of 1.67X is lower than the industry average of 2.25X, the Finance sector’s 3.94X, and the Zacks S&P 500 Composite’s 7.46X.

Image Source: Zacks Investment Research

The company has a Value Score of A. This style score helps find the most attractive value stocks.

ORI’s Growth Projection Encourages

The Zacks Consensus Estimate for Old Republic International's 2026 earnings per share indicates a year-over-year increase of 3.1%. The consensus estimate for 2026 revenues is pegged at $9.72 billion, implying a year-over-year improvement of 8.5%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 3% and 6.8%, respectively, from the corresponding 2026 estimates.

Earnings Surprise History

Old Republic International surpassed earnings estimates in three of the last four quarters while missing in one, the average being 12.8%.

Average Target Price for ORI Suggests Upside

Based on short-term price targets offered by two analysts, the Zacks average price target is $42.50 per share. The average suggests a potential 7.8% upside from the last closing price.

Image Source: Zacks Investment Research

ORI’s Favorable Return on Capital

Return on equity (ROE) for the trailing 12 months was 16.2%, which compared favorably with the industry’s 15.3%. This reflects its efficiency in utilizing shareholders’ funds. ORI’s ROE has been increasing over the last few quarters.

Also, return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame. This reflects ORI’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 3%, better than the industry average of 2.1%.

Factors Acting in Favor of ORI

ORI has a diverse and decentralized portfolio of specialty insurance products and services.

In 2025, Specialty Insurance continued to expand its product capabilities beyond its traditional focus on commercial auto and workers’ compensation.

The Specialty Insurance segment of ORI should continue to benefit from a combination of premium rate increases, high renewal retention ratios and new business production, including an increasing contribution from new operating companies. Commercial auto and general liability continued to achieve significant rate increases.

Old Republic International’s Title Insurance segment's solid net premiums and fees earned continue to reflect strong activity in the commercial sector and a modest uptick in refinance activity. Both agency and directly produced premiums experienced double-digit growth in 2025, riding on lower interest rates and strong commercial business production.

Conclusion

As part of wealth distribution to shareholders, ORI also engages in regular buybacks. ORI’s dividend history is impressive. It has hiked dividends for the last 43 years. Its dividend yield of 3.1% appears attractive compared with the industry average of 2.7%, making it an attractive pick for yield-seeking investors.

However, a high debt level, an increase in interest expense and a lower asset base in a low-interest rate environment keep us cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CNO Financial Group, Inc. (CNO): Free Stock Analysis Report

MetLife, Inc. (MET): Free Stock Analysis Report

Markel Group Inc. (MKL): Free Stock Analysis Report

Old Republic International Corporation (ORI): Free Stock Analysis Report

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

Zacks Investment Research