ACE Ltd (ACE): 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

ACE ( ACE) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 0.5%. By the end of trading, ACE fell $1.11 (-1.2%) to $88.32 on light volume. Throughout the day, 1,059,940 shares of ACE exchanged hands as compared to its average daily volume of 1,482,200 shares. The stock ranged in price between $88.22-$90.17 after having opened the day at $89.80 as compared to the previous trading day's close of $89.43. Other companies within the Insurance industry that declined today were: Homeowners Choice ( HCI), down 3.2%, Stewart Information Services ( STC), down 3.1%, United Fire Group ( UFCS), down 2.9% and ING US ( VOYA), down 2.8%.
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ACE Limited, through its subsidiaries, provides a range of insurance and reinsurance products to insured's worldwide. ACE has a market cap of $30.7 billion and is part of the financial sector. The company has a P/E ratio of 11.5, 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 15 analysts that rate ACE a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates ACE as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, notable return on equity, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Atlas Financial Holdings ( AFH), down 4.0%, Atlantic American ( AAME), down 3.0%, Donegal Group ( DGICB), down 2.9% and eHealth ( EHTH), down 2.9%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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