3 Stocks Pushing The Insurance Industry Lower

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.

The Insurance industry as a whole closed the day down 0.4% versus the S&P 500, which was up 0.1%. Laggards within the Insurance industry included Life Partners Holdings ( LPHI), down 6.0%, Fortegra Financial ( FRF), down 2.5%, 1347 Property Insurance Holdings ( PIH), down 1.9%, Blue Capital Reinsurance Holdings ( BCRH), down 3.8% and OneBeacon Insurance Group ( OB), down 3.5%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Blue Capital Reinsurance Holdings ( BCRH) is one of the companies that pushed the Insurance industry lower today. Blue Capital Reinsurance Holdings was down $0.71 (3.8%) to $17.87 on heavy volume. Throughout the day, 104,578 shares of Blue Capital Reinsurance Holdings exchanged hands as compared to its average daily volume of 57,000 shares. The stock ranged in price between $17.82-$18.56 after having opened the day at $18.45 as compared to the previous trading day's close of $18.58.

Blue Capital Reinsurance Holdings has a market cap of $167.2 million and is part of the financial sector. Shares are up 1.1% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Blue Capital Reinsurance Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

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

At the close, Fortegra Financial ( FRF) was down $0.18 (2.5%) to $7.02 on light volume. Throughout the day, 26,623 shares of Fortegra Financial exchanged hands as compared to its average daily volume of 39,900 shares. The stock ranged in price between $7.00-$7.20 after having opened the day at $7.20 as compared to the previous trading day's close of $7.20.

Fortegra Financial Corporation, together with its subsidiaries, operates as an insurance services company in the United States. It offers products that protect lenders and their customers from death, disability, or other events that could impair their ability to repay a debt. Fortegra Financial has a market cap of $145.9 million and is part of the financial sector. Shares are down 12.9% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Fortegra Financial a buy, no analysts rate it a sell, and 1 rates it a hold.

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

TheStreet Ratings rates Fortegra Financial 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, attractive valuation levels, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on FRF go as follows:

  • FRF's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although FRF's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
  • FORTEGRA FINANCIAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FORTEGRA FINANCIAL CORP reported lower earnings of $0.51 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.51).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Insurance industry average. The net income increased by 16.2% when compared to the same quarter one year prior, going from $2.49 million to $2.90 million.

You can view the full analysis from the report here: Fortegra Financial Ratings Report

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

Life Partners Holdings ( LPHI) was another company that pushed the Insurance industry lower today. Life Partners Holdings was down $0.13 (6.0%) to $2.03 on heavy volume. Throughout the day, 89,840 shares of Life Partners Holdings exchanged hands as compared to its average daily volume of 17,100 shares. The stock ranged in price between $1.96-$2.16 after having opened the day at $2.15 as compared to the previous trading day's close of $2.16.

Life Partners Holdings, Inc., through its subsidiary, Life Partners, Inc., operates in the secondary market for life insurance worldwide. It facilitates the sale of life settlements between sellers and purchasers, but does not take possession or control of the policies. Life Partners Holdings has a market cap of $42.0 million and is part of the financial sector. Shares are up 21.4% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Life Partners Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

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

Highlights from TheStreet Ratings analysis on LPHI go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Financial Services industry. The net income has significantly decreased by 203.4% when compared to the same quarter one year ago, falling from $1.68 million to -$1.74 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, LIFE PARTNERS HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of LIFE PARTNERS HOLDINGS INC has not done very well: it is down 13.41% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • LIFE PARTNERS HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LIFE PARTNERS HOLDINGS INC continued to lose money by earning -$0.13 versus -$0.16 in the prior year.
  • Net operating cash flow has significantly increased by 61.65% to -$1.10 million when compared to the same quarter last year. In addition, LIFE PARTNERS HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -18.61%.

You can view the full analysis from the report here: Life Partners Holdings Ratings Report

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

More from Markets

In Trump Era, Managing JPMorgan Is As Unpredictable As a Midnight Tweet

In Trump Era, Managing JPMorgan Is As Unpredictable As a Midnight Tweet

Video: Don't Underestimate China's Strength in a Trade War

Video: Don't Underestimate China's Strength in a Trade War

Master Limited Partnerships: A Badly Missed Investment Opportunity?

Master Limited Partnerships: A Badly Missed Investment Opportunity?

America's Massive Truck Driver Shortage May Triple by 2026: Experts

America's Massive Truck Driver Shortage May Triple by 2026: Experts

Top Analysts Say Gamble On These 3 Ace Stocks

Top Analysts Say Gamble On These 3 Ace Stocks