Strong And Under The Radar Today: Markel Corporation (MKL)

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 Markel Corporation ( MKL) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Markel Corporation as such a stock due to the following factors:

  • MKL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.7 million.
  • MKL is making at least a new 3-day high.
  • MKL has a PE ratio of 31.1.
  • MKL is mentioned 0.61 times per day on StockTwits.
  • MKL has not yet been mentioned on StockTwits today.
  • MKL is currently in the upper 20% of its 1-year range.
  • MKL is in the upper 35% of its 20-day range.
  • MKL is in the upper 45% of its 5-day range.
  • MKL is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MKL with the Ticky from Trade-Ideas. See the FREE profile for MKL NOW at Trade-Ideas

More details on MKL:

Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. It operates in three segments: Excess and Surplus Lines, Specialty Admitted, and London Insurance Market. MKL has a PE ratio of 31.1. Currently there is 1 analyst that rates Markel Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Markel Corporation has been 35,800 shares per day over the past 30 days. Markel has a market cap of $9.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.78 and a short float of 1.6% with 8.30 days to cover. Shares are up 10.9% year-to-date as of the close of trading on Thursday.

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 Markel Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, 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.

Highlights from the ratings report include:
  • MKL's revenue growth has slightly outpaced the industry average of 12.3%. Since the same quarter one year prior, revenues rose by 22.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Insurance industry average. The net income increased by 44.4% when compared to the same quarter one year prior, rising from $27.76 million to $40.07 million.
  • Net operating cash flow has increased to $214.65 million or 16.39% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.08%.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Despite currently having a low debt-to-equity ratio of 0.32, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.

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

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers