New Lifetime High Today: ACE (ACE)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified ACE ( ACE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified ACE as such a stock due to the following factors:

  • ACE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $93.7 million.
  • ACE has traded 885,358 shares today.
  • ACE is trading at a new lifetime high.

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More details on ACE:

ACE Limited, through its subsidiaries, provides a range of insurance and reinsurance products to insured's worldwide. The stock currently has a dividend yield of 2.2%. ACE has a PE ratio of 10.0. Currently there are 14 analysts that rate ACE a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for ACE has been 1.2 million shares per day over the past 30 days. ACE has a market cap of $32.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.96 and a short float of 1.2% with 4.24 days to cover. Shares are up 18.6% year to date as of the close of trading on Friday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ACE as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 19.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ACE's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • ACE LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ACE LTD increased its bottom line by earning $7.88 versus $4.51 in the prior year. This year, the market expects an improvement in earnings ($8.55 versus $7.88).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 171.6% when compared to the same quarter one year prior, rising from $328.00 million to $891.00 million.

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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