This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 Buy-Rated Insurance Stocks with up to 40% Upside

Stocks in this article: MET ALL AFL PRU LNC PFG UNM AIZ AEL MIG

NEW YORK ( TheStreet) -- By any measure insurance stocks are cheaply priced, and with industry names avoiding having regulatory targets on their backs, investors should take a second look at the group.

Starting with a list of U.S. insurance stocks rated a "buy" by TheStreet Ratings, we have pared down the group to companies with at least one sell-side "buy" recommendation that we could verify, and names with three-month average daily trading volume of over 50,000 shares.

TheStreet's proprietary stock ratings model produces a composite rating that incorporates a stock's performance and volatility, incorporating technical and fundamental analysis.

We've included information on the estimates provided by property and casualty carriers for catastrophe losses related to the tornados and floods that have caused so much damage over the past two months in the Southeast and Midwest.

Gavin Magor, a senior financial analyst with Weiss Ratings, said he doesn't "expect property and casualty insurers to have a breakout year, as we have already seen substantial claims from flooding, snow melt and tornados, and we have only just entered the hurricane season."

Magor said that life insurers "depend almost entirely on investment income for profitability, and 2011 is not shaping up to be a good year if we look at the performance of the stock market."

For a health insurance industry in flux, Magor says "the bigger the better, as small insurers will continue to struggle."

All 10 of these stocks are trading very cheaply relative to forward earnings.

Of course, when considering consensus price targets, it's important to keep overall sentiment in mind. Many analysts with neutral ratings don't provide a price target, and only six of these ten insurance stocks have a majority of analysts rating them a buy.

The following are the 10 buy-rated and actively traded insurance companies, with the most upside implied by mean price targets among analysts polled by FactSet. All data was provided by SNL Financial:

1 of 11

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs