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 1.4%. By the end of trading, ACE fell $2.03 (-2.3%) to $86.48 on heavy volume. Throughout the day, 2,755,368 shares of ACE exchanged hands as compared to its average daily volume of 1,488,700 shares. The stock ranged in price between $86.34-$88.08 after having opened the day at $87.71 as compared to the previous trading day's close of $88.51. Other companies within the Insurance industry that declined today were: CoreLogic ( CLGX), down 6.7%, Radian Group ( RDN), down 5.2%, Federated National ( FNHC), down 5.1% and MGIC Investment Corporation ( MTG), down 4.9%.
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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 10.9% year to date as of the close of trading on Wednesday. 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, solid stock price performance 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, First Acceptance Corporation ( FAC), down 14.0%, National Security Group ( NSEC), down 6.3%, Kingsway Financial Services ( KFS), down 2.9% and StanCorp Financial Group ( SFG), down 2.5% , were all gainers within the insurance industry with Unum Group ( UNM) 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).

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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