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 Aon plc (
AON) pushed the Insurance industry higher today making it today's featured insurance winner. The industry as a whole closed the day up 0.5%. By the end of trading, Aon plc rose $0.84 (1.4%) to $59.67 on light volume. Throughout the day, 1,478,207 shares of Aon plc exchanged hands as compared to its average daily volume of 2,312,100 shares. The stock ranged in a price between $58.84-$59.90 after having opened the day at $59.07 as compared to the previous trading day's close of $58.82. Other companies within the Insurance industry that increased today were:
American Independence Corporation (
AMIC), up 5.2%,
Crawford & Company (
CRD.B), up 4.2%,
Mercury General Corporation (
MCY), up 4.0% and
Symetra Financial Corporation (
SYA), up 4.0%.
- EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
Aon plc provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services worldwide. Aon plc has a market cap of $18.9 billion and is part of the financial sector. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Friday.
TheStreet Ratings rates Aon plc as a
buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
On the negative front,
First Acceptance Corporation (
FAC), down 8.6%,
Life Partners Holdings (
LPHI), down 4.3%,
United Fire Group (
UFCS), down 3.4% and
Donegal Group (
DGICB), down 3.3% , were all laggards within the insurance industry with
MBIA (
MBI) 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).
Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
