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 ACE as such a stock due to the following factors:
- ACE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.6 million.
- ACE has traded 293 shares today.
- ACE is trading at a new lifetime high.
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More details on ACE:
ACE Limited, through its subsidiaries, provides a range of insurance and reinsurance products to insureds worldwide. The company operates through five segments: Insurance - North American P&C, Insurance - North American Agriculture, Insurance - Overseas General, Global Reinsurance, and Life. The stock currently has a dividend yield of 2.4%. ACE has a PE ratio of 9.7. Currently there are 11 analysts that rate ACE a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for ACE has been 1.3 million shares per day over the past 30 days. ACE has a market cap of $36.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.16 and a short float of 1.5% with 3.53 days to cover. Shares are up 4.7% year-to-date as of the close of trading on Wednesday.
rates ACE as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- ACE's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- ACE LTD's earnings per share declined by 12.8% 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, ACE LTD increased its bottom line by earning $10.92 versus $7.88 in the prior year. For the next year, the market is expecting a contraction of 12.5% in earnings ($9.55 versus $10.92).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, ACE LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Insurance industry average. The net income has decreased by 14.3% when compared to the same quarter one year ago, dropping from $916.00 million to $785.00 million.
- You can view the full ACE Ratings Report.