New Lifetime High Today: Reinsurance Group Of America (RGA)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Reinsurance Group of America as such a stock due to the following factors:
- RGA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.7 million.
- RGA has traded 2,604 shares today.
- RGA is trading at a new lifetime high.
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More details on RGA:
Reinsurance Group of America, Incorporated is engaged in the life and health reinsurance business. The stock currently has a dividend yield of 1.5%. RGA has a PE ratio of 9.3. Currently there are 4 analysts that rate Reinsurance Group of America a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Reinsurance Group of America has been 286,900 shares per day over the past 30 days. Reinsurance Group of America has a market cap of $6.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.33 and a short float of 0.9% with 1.36 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Reinsurance Group of America as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 31.8% when compared to the same quarter one year prior, rising from $144.96 million to $191.09 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, REINSURANCE GROUP AMER INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- REINSURANCE GROUP AMER INC has improved earnings per share by 35.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, REINSURANCE GROUP AMER INC increased its bottom line by earning $9.79 versus $5.76 in the prior year. For the next year, the market is expecting a contraction of 11.4% in earnings ($8.67 versus $9.79).
- You can view the full Reinsurance Group of America Ratings Report.
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