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.
PartnerRe (
PRE) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day up 0.6%. By the end of trading, PartnerRe fell 91 cents (-1%) to $88.09 on heavy volume. Throughout the day, 1.1 million shares of PartnerRe exchanged hands as compared to its average daily volume of 449,000 shares. The stock ranged in price between $87.99-$88.46 after having opened the day at $88.16 as compared to the previous trading day's close of $89. Other companies within the Insurance industry that declined today were:
Primerica (
PRI), down 2.6%,
Arch Capital Group (
ACGL), down 2.3%,
American International Group (
AIG), down 2.1%, and
Aflac (
AFL), down 1.5%.
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PartnerRe Ltd., through its subsidiaries, provides reinsurance services worldwide. PartnerRe has a market cap of $5.44 billion and is part of the financial sector. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are up 10.3% year to date as of the close of trading on Monday. Currently there are six analysts that rate PartnerRe a buy, one analyst rates it a sell, and nine rate it a hold.
TheStreet Ratings rates PartnerRe as a
buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
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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