New Lifetime High Reached: WR Berkley (WRB)

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

  • WRB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.3 million.
  • WRB has traded 3,700 shares today.
  • WRB is trading at a new lifetime high.

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More details on WRB:

W. R. Berkley Corporation, an insurance holding company, operates as commercial lines writers primarily in the United States. The company operates in three segments: Insurance-Domestic, Insurance-International, and Reinsurance-Global. The stock currently has a dividend yield of 0.8%. WRB has a PE ratio of 10.5. Currently there is 1 analyst that rates WR Berkley a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for WR Berkley has been 517,200 shares per day over the past 30 days. WR Berkley has a market cap of $6.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.73 and a short float of 3.2% with 6.84 days to cover. Shares are up 20.2% year-to-date as of the close of trading on Wednesday.

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 WR Berkley as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • 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.
  • 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 37.6% when compared to the same quarter one year prior, rising from $136.97 million to $188.54 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 22.0%. Since the same quarter one year prior, revenues rose by 12.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BERKLEY (W R) CORP has improved earnings per share by 46.4% 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, BERKLEY (W R) CORP reported lower earnings of $3.55 versus $3.58 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus $3.55).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, BERKLEY (W R) CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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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