ACE Ltd (ACE): Today's Featured Financial 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.

ACE ( ACE) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.7%. By the end of trading, ACE rose 97 cents (1.1%) to $86.75 on light volume. Throughout the day, 798,715 shares of ACE exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in a price between $86.14-$87.09 after having opened the day at $86.14 as compared to the previous trading day's close of $85.78. Other companies within the Financial sector that increased today were: Millennium India Acquisition Corporation ( SMCG), up 38.5%, Altisource Residential Corporation ( RESI), up 36.7%, MGIC Investment Corporation ( MTG), up 27.8%, and First Marblehead Corporation ( FMD), up 8.9%.
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ACE Limited, through its subsidiaries, provides a range of insurance and reinsurance products to insureds worldwide. ACE has a market cap of $29.07 billion and is part of the insurance industry. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are up 7.5% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate ACE a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates ACE as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, China HGS Real Estate ( HGSH), down 15%, OptimumBank Holdings ( OPHC), down 9.6%, Institutional Financial Markets ( IFMI), down 8%, and WVS Financial ( WVFC), down 7.5%, were all laggards within the financial sector with BB&T ( BBT) being today's financial sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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