Berkshire Hathaway Inc (BRK.B): Today's Featured Insurance Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Berkshire Hathaway ( BRK.B) pushed the Insurance industry higher today making it today's featured insurance winner. The industry as a whole closed the day up 0.6%. By the end of trading, Berkshire Hathaway rose $1.21 (1.4%) to $87.56 on average volume. Throughout the day, 4.7 million shares of Berkshire Hathaway exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in a price between $86.54-$87.66 after having opened the day at $86.58 as compared to the previous trading day's close of $86.35. Other companies within the Insurance industry that increased today were: Radian Group ( RDN), up 14.5%, MGIC Investment Corporation ( MTG), up 12.8%, CNinsure ( CISG), up 7.3%, and Investors Title Company ( ITIC), up 5.9%.
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Berkshire Hathaway, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska. Berkshire Hathaway has a market cap of $94.15 billion and is part of the financial sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 13.6% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Berkshire Hathaway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Greenlight Capital Re ( GLRE), down 5.7%, Montpelier RE Holdings ( MRH), down 3.7%, Endurance Specialty Holdings ( ENH), down 3.3%, and National Security Group ( NSEC), down 3.2%, were all laggards within the insurance industry with Travelers Companies ( TRV) being today's insurance industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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