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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

HCC Insurance Holdings

(

HCC

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified HCC Insurance Holdings as such a stock due to the following factors:

  • HCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $80.2 million.
  • HCC has traded 3,469 shares today.
  • HCC is trading at a new lifetime high.

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More details on HCC:

HCC Insurance Holdings, Inc. underwrites non-correlated specialty insurance products worldwide. The company operates in five segments: U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit, and International. The U.S. The stock currently has a dividend yield of 1.5%. HCC has a PE ratio of 16. Currently there are 3 analysts that rate HCC Insurance Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Recommends

The average volume for HCC Insurance Holdings has been 1.1 million shares per day over the past 30 days. HCC has a market cap of $7.4 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.33 and a short float of 1.2% with 0.98 days to cover. Shares are up 44.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates HCC Insurance Holdings as a

buy

. 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, solid stock price performance, notable return on equity and increase in net income. We feel its 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 9.6%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although HCC's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 57.75% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HCC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Insurance industry average. The net income increased by 4.6% when compared to the same quarter one year prior, going from $107.91 million to $112.92 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, HCC INSURANCE HOLDINGS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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