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Trade-Ideas LLC identified

HCC Insurance Holdings

(

HCC

) as a post-market laggard 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 $72.6 million.
  • HCC is down 5.1% today from today's close.

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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 17. Currently there are no analysts that rate HCC Insurance Holdings a buy, 1 analyst rates it a sell, and 5 rate it a hold.

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 0.31 and a short float of 1.2% with 1.17 days to cover. Shares are up 45.1% year-to-date as of the close of trading on Wednesday.

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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, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 12.3%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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.
  • 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.
  • Compared to its closing price of one year ago, HCC's share price has jumped by 58.80%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
  • HCC INSURANCE HOLDINGS INC's earnings per share declined by 13.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HCC INSURANCE HOLDINGS INC increased its bottom line by earning $4.61 versus $4.04 in the prior year. For the next year, the market is expecting a contraction of 11.1% in earnings ($4.10 versus $4.61).

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