Assurant
AIZ
$287.22
-0.80%
Assurant, Inc. is a global provider of protection products and services, partnering with brands to safeguard and service connected devices, homes, and automobiles across North America, Latin America, Europe, and Asia Pacific. Operating through two primary segments—Global Lifestyle and Global Housing—the company offers mobile device solutions, extended warranties, lender-placed insurance, and other specialty insurance products. As a niche player in the specialty insurance space, Assurant differentiates itself through its focus on embedded protection programs and its strong relationships with major retailers, wireless carriers, and financial institutions. The current investor narrative centers on the company's robust growth trajectory, driven by expansion in its Global Lifestyle segment and a favorable housing market, while also navigating potential headwinds from interest rate fluctuations and competitive pressures in the device protection market.…
AIZ
Assurant
$287.22
Investment Opinion: Should I buy AIZ Today?
Based on the analysis, AIZ is rated a Buy. The thesis is that Assurant's accelerating revenue growth, attractive valuation (PEG 0.74), and strong analyst support (Strong Buy consensus) provide a favorable risk/reward profile, despite the stock trading near its 52-week high. The average analyst target of $293.00 is close to the current price, but the low beta and defensive characteristics make it a solid addition to a diversified portfolio.
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AIZ 12-Month Price Forecast
The AI assessment leans bullish, driven by strong fundamental momentum and a valuation that appears reasonable given the growth rate. The accelerating revenue growth and low PEG ratio suggest the market may be underpricing the company's potential. However, the medium confidence reflects the stock's proximity to its 52-week high and the modest analyst target upside, which could limit near-term gains. If the company continues to execute and revenue growth remains above 10%, the stance would be upgraded to high confidence. Conversely, any signs of growth deceleration or margin compression would prompt a downgrade to neutral.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Assurant's 12-month outlook, with a consensus price target around $309.50 and implied upside of +7.8% versus the current price.
Average Target
$309.50
0 analysts
Implied Upside
+7.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$274 - $355
Analyst target range
The target price range spans from a low of $274.00 to a high of $310.00, representing a spread of $36.00, which indicates moderate uncertainty. The low target implies a downside of -7.6% from the current price, while the high target suggests an upside of +4.6%. The high target likely assumes continued strong growth in the Global Lifestyle segment and successful execution of strategic initiatives, while the low target may factor in potential margin compression or competitive pressures. The recent upgrade from Morgan Stanley (from Equal Weight to Overweight) and consistent Buy ratings from Truist and UBS suggest that analysts are becoming more confident in the company's prospects, though the relatively narrow target range indicates a consensus view that the stock is fairly valued near current levels.
Bulls vs Bears: AIZ Investment Factors
Assurant presents a compelling bull case with accelerating revenue growth, a low PEG ratio, and strong analyst support, but the stock's proximity to its 52-week high and limited analyst target upside temper the enthusiasm. The most important tension is whether the company can sustain its growth acceleration to justify its current valuation, which already reflects high expectations. If revenue growth continues to accelerate, the stock could break out to new highs, but any slowdown could trigger a correction given the limited margin of safety. Currently, the bull case has slightly stronger evidence, as the fundamental momentum and valuation support outweigh the near-term technical concerns.
Bullish
- Accelerating Revenue Growth: Q1 2026 revenue grew 11.3% YoY to $3.42B, up from 8.5% in Q4 2025 and 4.7% in Q1 2025, demonstrating clear acceleration. This momentum is driven by the Global Lifestyle segment, which grew to $2.66B, reflecting strong demand for device protection services.
- Attractive Valuation with PEG of 0.74: The PEG ratio of 0.74 indicates the stock is undervalued relative to its growth rate, as a PEG below 1 typically signals a bargain. With a trailing PE of 13.93x and forward PE of 12.87x, the market is pricing in modest earnings growth, yet the company is delivering accelerating revenue.
- Strong Analyst Support: Analysts rate AIZ a Strong Buy with a mean recommendation of 1.5, and the average target price of $293.00 is near the current price, implying limited downside. Recent upgrades from Morgan Stanley (Equal Weight to Overweight) and consistent Buy ratings from Truist and UBS reflect growing confidence.
- High Profitability and Cash Flow: Gross margin is a robust 77.5%, and the company generated $1.45B in trailing twelve-month free cash flow, providing ample capital for dividends and buybacks. The dividend yield of 1.39% is supported by a payout ratio of 19.3%, leaving room for future increases.
Bearish
- Stock Near 52-Week High: At $296.40, the stock is trading at 97.5% of its 52-week range, just 2.5% below the high of $303.94. This leaves limited upside in the near term and increases the risk of a pullback, especially if the broader market corrects.
- Modest Analyst Target Upside: The average analyst target of $293.00 is actually 1.2% below the current price, and the high target of $310.00 implies only 4.6% upside. This suggests that analysts see the stock as fairly valued, limiting potential for significant appreciation.
- Dependence on Global Lifestyle Segment: The Global Lifestyle segment accounts for approximately 78% of total revenue, creating concentration risk. If growth in mobile device protection slows or competition intensifies, the company's overall performance could be significantly impacted.
- Interest Rate Sensitivity: As an insurance company, AIZ's investment portfolio and housing-related business are sensitive to interest rate fluctuations. Rising rates could increase borrowing costs and potentially dampen housing market activity, affecting the Global Housing segment.
AIZ Technical Analysis
Assurant's stock is in a strong sustained uptrend, with a 1-year price change of +41.1% and a current price of $296.40, which sits near the top of its 52-week range (52-week high of $303.94, low of $200.62). The stock is trading at approximately 97.5% of its 52-week range, indicating strong momentum and bullish sentiment, though it may be approaching overbought conditions. The 6-month price change of +21.8% further confirms the upward trajectory, with the stock consistently making higher highs and higher lows over the past year.
Beta
0.54
0.54x market volatility
Max Drawdown
-12.9%
Largest decline past year
52-Week Range
$203-$304
Price range past year
Annual Return
+41.3%
Cumulative gain past year
| Period | AIZ Return | S&P 500 |
|---|---|---|
| 1m | +3.0% | +2.4% |
| 3m | +18.0% | +4.7% |
| 6m | +33.0% | +11.7% |
| 1y | +41.3% | +21.3% |
| ytd | +20.8% | +13.4% |
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AIZ Fundamental Analysis
Assurant's revenue growth has been robust, with the most recent quarter (Q1 2026) reporting revenue of $3.42 billion, a YoY increase of 11.3%. This marks an acceleration from the prior quarter's 8.5% growth (Q4 2025 revenue of $3.35 billion) and a significant improvement from the 4.7% growth seen in Q1 2025. The Global Lifestyle segment, which generated $2.66 billion in revenue, remains the primary growth driver, benefiting from strong demand for mobile device protection and connected device services. The Global Housing segment contributed $769.8 million, reflecting stable performance in lender-placed insurance. The company's revenue trajectory is clearly accelerating, supported by both organic growth and strategic partnerships.
Quarterly Revenue
$3.4B
2026-03
Revenue YoY Growth
+11.3%
YoY Comparison
Gross Margin
77.5%
Latest Quarter
Free Cash Flow
$1.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is AIZ Overvalued?
Given Assurant's positive net income, the PE ratio is the most appropriate valuation metric. The trailing PE is 13.93x, while the forward PE is 12.87x, indicating that the market expects earnings growth of approximately 8% over the next year. The PEG ratio of 0.74 suggests that the stock is undervalued relative to its growth rate, as a PEG below 1 typically indicates a potential bargain. The gap between trailing and forward PE implies modest earnings growth, which is consistent with the company's recent EPS performance and analyst estimates.
PE
13.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 3x~25x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
8.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a moderate debt-to-equity ratio of 0.376, which is manageable but could become a burden if interest rates rise. The company's current ratio of 0.55 indicates potential liquidity concerns, though this is common in the insurance industry where liabilities are matched by long-term investments. Operating margin of 8.5% is relatively thin, leaving limited buffer for cost increases or claims volatility. Revenue concentration in the Global Lifestyle segment (78% of total) poses a risk if that market matures or faces disruption. The company's net margin of 6.8% is respectable but could be pressured by competitive pricing in device protection services.
FAQ
The key risks include: 1) Financial risk: moderate debt-to-equity of 0.376 and a current ratio of 0.55, which could strain liquidity in a downturn. 2) Competitive risk: the Global Lifestyle segment faces intense competition in device protection, which could pressure margins. 3) Macro risk: as an insurance company, AIZ is sensitive to interest rates and housing market conditions. 4) Company-specific risk: revenue concentration in Global Lifestyle (78% of total) makes it vulnerable to a slowdown in that segment. The most severe risk is a combination of these factors leading to a decline to the 52-week low of $200.62, representing a potential -32% loss from the current price.
The 12-month forecast for AIZ is moderately bullish. In the base case (50% probability), the stock is expected to trade in the range of $280-$310, with an average target of $293. In the bull case (30% probability), it could reach $310-$330 if revenue growth accelerates further. In the bear case (20% probability), it could fall to $250-$274 if growth decelerates. The most likely scenario is the base case, which assumes continued growth at current levels. Key factors to watch are revenue growth in the Global Lifestyle segment and the housing market.
Based on valuation metrics, AIZ appears undervalued. The trailing PE of 13.93x and forward PE of 12.87x are reasonable for a company with accelerating revenue growth. The PEG ratio of 0.74 is below 1, indicating the stock is trading at a discount to its growth rate. Compared to the broader market, AIZ's PE is lower than the S&P 500 average, and its EV/EBITDA of 8.66x is attractive. The market is pricing in modest earnings growth, but the company is delivering stronger revenue growth, suggesting the stock could re-rate higher.
AIZ is a good buy for investors seeking a growth stock with defensive qualities. The stock has a PEG ratio of 0.74, indicating it is undervalued relative to its growth rate, and analysts rate it a Strong Buy. However, the stock is near its 52-week high, so there is limited upside in the near term. The biggest downside risk is a slowdown in revenue growth, which could lead to a de-rating. For long-term investors, the accelerating revenue growth and low beta make it an attractive addition to a diversified portfolio.
AIZ is more suitable for long-term investment due to its low beta (0.543) and defensive business model. The company has a dividend yield of 1.39% and a payout ratio of 19.3%, indicating room for dividend growth. The accelerating revenue growth and attractive valuation suggest that holding the stock for at least 3-5 years could yield significant returns. Short-term trading is possible given the stock's momentum, but the limited upside to analyst targets and proximity to the 52-week high make it less attractive for short-term gains. A minimum holding period of 3 years is recommended to fully capture the growth potential.