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
TheStreet Open House

Markel Is a Great Choice for Long-Term Investors: Opinion

NEW YORK ( TheStreet) -- Insurers are having a great year, and Markel (MKL - Get Report) is doing great.

Although its main business is insurance and that segment is doing well, some of the investments it has been making with its excess cash are performing even better.

The economy is in recovery, and while the market as measured by the Value Line Index was up 12% in the past year, Markel is up more than 24% for the same period:


Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. It operates in three segments: Excess and Surplus Lines, Specialty Admitted, and London Insurance Market.

The Excess and Surplus Lines segment writes property and casualty insurance outside of the standard market for hard-to-place risks, including catastrophe-exposed property, professional liability, products liability, general liability, and commercial umbrella, as well as provides environmental, transportation, inland marine, ocean marine, casualty facultative, railroad, and public entity insurance products.

The Specialty Admitted segment writes risks that remain with an admitted insurance company for marketing and regulatory reasons. This segment writes specialty program, personal and commercial property, and liability and workers' compensation insurance products.

The London Insurance Market segment writes specialty property, casualty, professional liability, equine, marine, energy, and trade credit insurance and reinsurance products. The company was founded in 1930 and is headquartered in Glen Allen, Virginia. (The preceding company profile is from Yahoo! Finance.)

Factors to Consider

Technical factors provided by

The stock rates a 96% Barchart technical buy signal as well as a Trend Spotter buy signal. It is trading above its 20-, 50- and 100-day moving average and hit 15 new highs in the last quarter as well as 31 new highs in the past year.

The price increased 14% for the quarter and 24% in the past year. The Relative Strength Index is 64.67%, and Barchart computes a technical support level at 470.41. The price recently was 476.50, which is above its 50-day moving average of 448.14.

Fundamental Factors

Wall Street is following this stock, and seven brokerage firms assigned 11 analysts to predict the company's numbers. They project revenue will increase by 8.8% this year and another 6.6% next year. Earnings are estimated to increase by 37.1% this year and an additional 8.2% next year. They're expected and continue to increase by an annual rate of 11.75% for five years out. The price-to-earnings ratio is a reasonable 21.24 when compared to the market P/E of 15-plus. The company has a single-A financial strength rating.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
MKL $771.53 0.00%
AAPL $126.37 0.00%
FB $83.20 0.00%
GOOG $552.03 0.00%
TSLA $190.57 0.00%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

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