MBIA Inc (MBI): Today's Featured Insurance Laggard

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.

MBIA ( MBI) 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, MBIA fell 31 cents (-2.4%) to $12.50 on average volume. Throughout the day, 5.2 million shares of MBIA exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in price between $12.33-$13 after having opened the day at $12.90 as compared to the previous trading day's close of $12.81. Other companies within the Insurance industry that declined today were: Life Partners Holdings ( LPHI), down 4%, Eastern Insurance Holdings ( EIHI), down 3.2%, Stewart Information Services ( STC), down 2.8%, and Aflac ( AFL), down 2.8%.
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MBIA Inc., together with its subsidiaries, provides financial guarantee insurance and related reinsurance, advisory, and portfolio services for the public and structured finance markets; and asset management advisory services in the United States and internationally. MBIA has a market cap of $2.51 billion and is part of the financial sector. The company has a P/E ratio of 2.1, below the S&P 500 P/E ratio of 17.7. Shares are up 63.2% year to date as of the close of trading on Thursday. Currently there are no analysts that rate MBIA a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates MBIA as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

On the positive front, Phoenix Companies ( PNX), up 8.5%, American Independence Corporation ( AMIC), up 6%, MetLife ( MET), up 4.9%, and Hartford Financial Services Group ( HIG), up 4.5%, were all gainers within the insurance industry with Prudential Financial ( PRU) being today's featured insurance industry leader.

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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