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

4 Insurance Stocks for Stormy Weather

EMC Insurance Group

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

I can't help myself; I'm irresistibly drawn to stocks being pummeled in the market. I love it when there is blood in the streets, leaving the potential for big gains by taking advantage of what often is irrational selling.

With small-cap EMC Insurance Group (EMCI - Get Report) we have the blood in the street. Since peaking in March at $24.74 per share, EMC has dropped to $19.60 per share today. That is a 20% decline in value.

With no significant changes in operating conditions (the company beat estimates by a penny in the first quarter of 2011), losses in stock market value fall squarely on the shoulders of expected increases in claims due to this spring's stormy weather.

Did the selling go too far? I think so. For the current year, analysts expect a profit of 45 cents per share, followed by a big jump to $1.70 a share in the next year. Investors can buy that more-than-100% earnings growth for just 11.5 times 2012 estimates. Big storms or not, that is pretty cheap in my book and worthy of consideration for any portfolio.

To see these stocks in action, check out the 5 Twister Stocks portfolio on Stockpickr.

-- Written by Jamie Dlugosch in Minneapolis.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jamie Dlugosch is a founder and contributor to
MainStreet Investor and MainStreet Accredited Investor . Formerly, he was president and CEO of Al Frank Asset Management. He has contributed editorially to The Rational Investor , The Prudent Speculator , Penny Stock Winners and InvestorPlace Media .
6 of 6

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

Check Out Our Best Services for Investors

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
ALL $63.37 2.13%
CINF $60.25 2.05%
EMCI $23.92 -1.32%
IPCC $75.95 -1.34%
TRV $106.29 -1.12%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs