New Lifetime High Today: RLI (RLI) - TheStreet

Trade-Ideas LLC identified

RLI

(

RLI

) 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 $19.4 million.
  • RLI has traded 192,665 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 1.3%. RLI has a PE ratio of 19. Currently there are no analysts that rate RLI a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for RLI has been 179,500 shares per day over the past 30 days. RLI has a market cap of $2.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.25 and a short float of 4% with 4.75 days to cover. Shares are down 2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates RLI 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, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 15.7%. Since the same quarter one year prior, revenues slightly increased by 1.7%. 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 0.17 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 stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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 8.0% when compared to the same quarter one year prior, going from $33.25 million to $35.91 million.

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