PartnerRe Ltd. (PRE) Gains Contribute To Strong Performance

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 higher today making it today's featured insurance winner. The industry as a whole closed the day down 1.5%. By the end of trading, PartnerRe rose $1.04 (1.1%) to $91.27 on heavy volume. Throughout the day, 802,035 shares of PartnerRe exchanged hands as compared to its average daily volume of 529,100 shares. The stock ranged in a price between $89.75-$91.70 after having opened the day at $90.26 as compared to the previous trading day's close of $90.23. Other companies within the Insurance industry that increased today were: American Independence Corporation ( AMIC), up 5.1% and eHealth ( EHTH), up 2.3%.
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PartnerRe Ltd., through its subsidiaries, provides reinsurance services worldwide. PartnerRe has a market cap of $5.18 billion and is part of the financial sector. The company has a P/E ratio of 5.3, below the S&P 500 P/E ratio of 17.7. Shares are up 12.1% year to date as of the close of trading on Tuesday. Currently there are four 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.

On the negative front, MGIC Investment Corporation ( MTG), down 5.7%, Donegal Group ( DGICB), down 5.6%, Independence Holding Company ( IHC), down 4.7%, and Radian Group ( RDN), down 4.6%, were all laggards within the insurance industry with Berkshire Hathaway ( BRK.A) 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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