This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Insurance Stocks That May Gain Up to 74%

BOSTON ( TheStreet) -- Insurance stocks are some of the cheapest in the equity market. Aside from AIG (AIG), which recently attracted capital from value guru Bruce Berkowitz of Fairholme Capital (FAIRX), insurance stocks get little attention from the media. Warren Buffett earned a fortune buying insurance companies. His Berkshire Hathaway (BRK.A) has been involved in the insurance business since it bought National Indemnity in 1967.

Here are the 10 cheapest U.S. insurance stocks. Most trade below book value and are predicted by analysts to make huge gains in the next year. Although the insurance business is inherently risky, the value of these stocks provides investors with a margin of safety. Below, they are ordered by forward earnings multiple, from cheap to cheapest.

10. Protective Life (PL) sells insurance and investment products. Second-quarter profit tumbled 54% to $41 million, or 47 cents a share, as revenue decreased 9.3% to $712 million. The operating margin narrowed from 21% to 14%. Protective Life's stock trades at a trailing earnings multiple of 7.2, a forward earnings multiple of 7.6 and a cash flow multiple of 1.7 -- 58%, 31%, and 82% discounts to insurance industry averages. One analyst rates it "buy," nine rate it "hold" and two rank it "sell." A median target of $25.43 suggests a 12-month return of 15%.

Bullish Scenario: UBS (UBS) predicts that Protective Life's stock will rise 40% to $31.
1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PL $69.95 0.00%
NFP $0.00 0.00%
TWGP $2.23 7.73%
AFSI $24.85 0.00%
HIG $44.38 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs