SIGI Stock Analysis: Buy, Sell, or Hold?
SIGI - Selective Insurance Group
$75.39
0.04 (0.05%)
▲
5d:
+1.09%
30d:
-11.16%
90d:
-10.82%
BUY
HIGH Confidence
Analysis Updated: Mar 31, 2026 12:00 AM ET
Earnings: Apr 22, 2026
21d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SIGI appears deeply undervalued. Market expects -4.7% annual earnings decline despite 66% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: SIGI appears deeply undervalued. Market expects -4.7% annual earnings decline despite 66% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$126.30
Based on 7.9% avg growth
INTRINSIC VALUE TODAY
$78.42
3.9% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 9.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SIGI is currently trading at $75.39, which is considered slightly low relative to its 30-day fair value range of $74.55 to $82.36. From a valuation perspective, the stock is trading at a discount (Forward PE: 8.5) compared to its historical average (9.8). Remarkably, the market is currently pricing in an annual earnings decline of 4.7% over the next few years. This pessimistic expectation contrasts with the company's recent 65.8% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SIGI is in a strong downtrend. The price is approaching resistance at $76.47. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (2th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $88.43 (+17.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SIGI is in a strong downtrend. The price is approaching resistance at $76.47. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (2th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $88.43 (+17.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Fair Price Range
$74.55 -
$82.36
Company Quality Score
63/100
(BUY)
Options IV Signal
2th percentile
(COMPLACENCY WARNING)
Volume Confirmation
HIGH
Confidence Score
81.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Options cheap (IV 2th percentile)
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($88.43)
Fair Price Analysis
30-Day Fair Range
$74.55 -
$82.36
Current vs Fair Value
SLIGHTLY LOW
Expected Move (7 Days)
±$2.63
(3.5%)
Support & Resistance Levels
Support Level
$72.78
Resistance Level
$76.47
Current Trend
Strong Downtrend
Technical data as of
Mar 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
8.52
Wall Street Target
$88.43
(+17.4%)
Revenue Growth (YoY)
8.6%
Earnings Growth (YoY)
65.8%
Profit Margin
8.7%
Valuation Discount vs History
-4.7% cheaper
PE vs Historical
8.5 vs 9.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.7%
(market-implied from PE analysis)
1-Year Target
$71.81
(-5%)
2-Year Target
$68.43
(-9%)
3-Year Target
$65.22
(-13%)
3-Yr Target (if PE normalizes)
(PE: 9→10)
$75.04
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 11.7%)
$275.38
(+266%)
Base:
(SPY PE: 8.5, Growth: 11.7%)
$104.95
(+39%)
Bear:
(PE: 7.2, Growth: 11.7%)
$89.21
(+18%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (9x PE) as earnings recover.
Trailing PE: 9.89 | Current EPS (TTM): $7.49
Bull Case
$96.19
(+28%)
Analyst growth 18.1%, PE expands to 10.9
Base Case
$87.45
(+17%)
Market implied 18.1%, PE stable at 9.9
Bear Case
$50.35
(-33%)
Severe decline -20.0%, PE contracts to 8.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 8.5 to 9.8
Stabilization Target:
$86.69
(+15.1%)
PE Expansion Potential:
+15.1%
Share & Embed Analysis
Last updated: March 31, 2026 4:25 PM ET
Data refreshes hourly during market hours. Next update: 5:25 PM
Data refreshes hourly during market hours. Next update: 5:25 PM
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Technical Signals Check
Is SIGI showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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