Mortgage insurance provider NMI Holdings (NASDAQ:NMIH) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 7.2% year on year to $173.8 million. Its non-GAAP profit of $1.22 per share was 2.6% above analysts’ consensus estimates.
Since July 2020, the S&P 500 has delivered a total return of 97.3%. But one standout stock has doubled the market - over the past five years, NMI Holdings has surged 198% to $40.97 per share. Its momentum hasn’t stopped as it’s also gained 17.5% in the last six months thanks to its solid quarterly results, beating the S&P by 10.7%.
Insurance providers use their expertise in risk assessment to help protect assets while offering consumers peace of mind through comprehensive coverage options. Market leaders have certainly capitalized on strong underwriting results and rising investment income to boost profitability,
helping fuel a 7% gain for the industry over the past six months - 2.4 percentage points higher than the S&P 500.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
The property and casualty insurance industry appears to be undervalued compared with the S&P 500 composite. Such a market positioning hints at room for upside in the coming quarters. Thus, here is a look at some stocks in the industry.
