3 Stocks Pushing The Insurance Industry Lower

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The Insurance industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.7%. Laggards within the Insurance industry included American Independence ( AMIC), down 2.4%, Independence ( IHC), down 1.9%, Crawford & Company ( CRD.B), down 3.1%, Citizens ( CIA), down 2.2% and Imperial Holdings ( IFT), down 2.0%.

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

Imperial Holdings ( IFT) is one of the companies that pushed the Insurance industry lower today. Imperial Holdings was down $0.13 (2.0%) to $6.42 on light volume. Throughout the day, 38,800 shares of Imperial Holdings exchanged hands as compared to its average daily volume of 87,400 shares. The stock ranged in price between $6.34-$6.49 after having opened the day at $6.46 as compared to the previous trading day's close of $6.55.

Imperial Holdings, Inc., through its subsidiaries, operates as a specialty finance company in the United States. As of December 31, 2013, it owned and managed a portfolio of 612 life insurance policies, also referred to as life settlements. Imperial Holdings, Inc. Imperial Holdings has a market cap of $139.1 million and is part of the financial sector. Shares are up 0.1% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Imperial Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Imperial Holdings as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on IFT go as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.97, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • IFT, with its very weak revenue results, has greatly underperformed against the industry average of 0.4%. Since the same quarter one year prior, revenues plummeted by 86.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for IMPERIAL HOLDINGS INC is currently extremely low, coming in at 11.02%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -71.88% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$9.18 million or 319.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

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At the close, Citizens ( CIA) was down $0.15 (2.2%) to $6.71 on average volume. Throughout the day, 64,082 shares of Citizens exchanged hands as compared to its average daily volume of 67,100 shares. The stock ranged in price between $6.68-$6.87 after having opened the day at $6.86 as compared to the previous trading day's close of $6.86.

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It primarily offers whole life insurance, endowments, credit insurance, final expense, and limited liability property policies. Citizens has a market cap of $337.7 million and is part of the financial sector. Shares are down 21.6% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Citizens as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CIA go as follows:

  • CIA's revenue growth trails the industry average of 19.7%. Since the same quarter one year prior, revenues slightly increased by 5.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CIA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • CITIZENS INC's earnings per share declined by 33.3% in the most recent quarter compared to 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, CITIZENS INC increased its bottom line by earning $0.11 versus $0.09 in the prior year.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, CITIZENS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for CITIZENS INC is currently extremely low, coming in at 4.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.03% trails that of the industry average.

You can view the full analysis from the report here: Citizens 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.

Independence ( IHC) was another company that pushed the Insurance industry lower today. Independence was down $0.27 (1.9%) to $13.56 on heavy volume. Throughout the day, 19,137 shares of Independence exchanged hands as compared to its average daily volume of 11,200 shares. The stock ranged in price between $13.46-$13.94 after having opened the day at $13.94 as compared to the previous trading day's close of $13.83.

Independence Holding Company provides life and health insurance products in the United States, the Virgin Islands, and Puerto Rico. Independence has a market cap of $242.6 million and is part of the financial sector. Shares are up 2.5% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Independence as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster 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 IHC go as follows:

  • IHC's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has significantly increased by 101.73% to $3.32 million when compared to the same quarter last year. In addition, INDEPENDENCE HOLDING CO has also vastly surpassed the industry average cash flow growth rate of -7.26%.
  • 37.91% is the gross profit margin for INDEPENDENCE HOLDING CO which we consider to be strong. Regardless of IHC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.82% trails the industry average.
  • The revenue fell significantly faster than the industry average of 19.7%. Since the same quarter one year prior, revenues fell by 10.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Insurance industry average, but is greater than that of the S&P 500. The net income increased by 4.3% when compared to the same quarter one year prior, going from $3.69 million to $3.85 million.

You can view the full analysis from the report here: Independence 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.

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