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

Universal Insurance Holdings

(

UVE

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

  • UVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • UVE has traded 11,757 shares today.
  • UVE is trading at a new lifetime high.

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More details on UVE:

Universal Insurance Holdings, Inc., through its subsidiaries, provides various property and casualty insurance products. It primarily underwrites homeowners' insurance products; and offers reinsurance intermediary brokerage services. The stock currently has a dividend yield of 1.9%. UVE has a PE ratio of 11.9. Currently there are no analysts that rate Universal Insurance Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Universal Insurance Holdings has been 339,500 shares per day over the past 30 days. Universal has a market cap of $777.1 million and is part of the financial sector and insurance industry. The stock has a beta of 2.31 and a short float of 6.9% with 7.02 days to cover. Shares are up 10% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Universal 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, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 32.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although UVE's debt-to-equity ratio of 0.16 is very low, it is currently higher than that of the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Insurance industry and the overall market, UNIVERSAL INSURANCE HLDGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for UNIVERSAL INSURANCE HLDGS is rather high; currently it is at 66.97%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.61% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 740.04% to $35.71 million when compared to the same quarter last year. In addition, UNIVERSAL INSURANCE HLDGS has also vastly surpassed the industry average cash flow growth rate of -88.35%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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