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 $19.2 million.
  • VR has traded 1,157 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, Talbot, Western World, and AlphaCat. The stock currently has a dividend yield of 2.9%. VR has a PE ratio of 11. Currently there are 2 analysts that rate Validus Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for Validus Holdings has been 423,100 shares per day over the past 30 days. Validus has a market cap of $4.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.69 and a short float of 1.2% with 2.18 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Wednesday.

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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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.1%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Although VR's debt-to-equity ratio of 0.30 is very low, it is currently higher than that of the industry average.
  • 48.90% is the gross profit margin for VALIDUS HOLDINGS LTD which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.70% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 85.10% to -$34.05 million when compared to the same quarter last year. In addition, VALIDUS HOLDINGS LTD has also vastly surpassed the industry average cash flow growth rate of -17.71%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite 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.

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