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

Validus Holdings

(

VR

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

  • VR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.2 million.
  • VR has traded 6,818 shares today.
  • VR is trading at a new lifetime high.

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More details on VR:

Validus Holdings, Ltd. provides reinsurance coverage, insurance coverage, and insurance linked securities management services worldwide. It operates through four segments: Validus Re, AlphaCat, Talbot, and Western World. The stock currently has a dividend yield of 2.8%. VR has a PE ratio of 9. Currently there are 3 analysts that rate Validus Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for Validus Holdings has been 537,800 shares per day over the past 30 days. Validus has a market cap of $3.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.87 and a short float of 1.5% with 2.62 days to cover. Shares are up 11.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Validus Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. 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 10.6%. Since the same quarter one year prior, revenues slightly increased by 8.9%. 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.
  • Compared to its closing price of one year ago, VR's share price has jumped by 26.14%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, VR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 37.66% is the gross profit margin for VALIDUS HOLDINGS LTD which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, VR's net profit margin of 10.76% compares favorably to the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.59, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • VALIDUS HOLDINGS LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, VALIDUS HOLDINGS LTD increased its bottom line by earning $5.06 versus $4.88 in the prior year. For the next year, the market is expecting a contraction of 5.1% in earnings ($4.80 versus $5.06).

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