RLI (RLI) Reaches New Lifetime High Today
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.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified RLI as such a stock due to the following factors:
- RLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
- RLI has traded 68,198 shares today.
- RLI is trading at a new lifetime high.
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More details on RLI:
RLI Corp., through its subsidiaries, underwrites property and casualty insurance primarily in the United States. The stock currently has a dividend yield of 1.4%. RLI has a PE ratio of 16.7. Currently there are no analysts that rate RLI a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for RLI has been 130,800 shares per day over the past 30 days. RLI has a market cap of $2.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.32 and a short float of 3.7% with 9.66 days to cover. Shares are up 5.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates RLI as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 10.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- RLI's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- 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, RLI CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Insurance industry average, but is less than that of the S&P 500. The net income increased by 10.7% when compared to the same quarter one year prior, going from $33.86 million to $37.50 million.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full RLI Ratings Report.
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