3 Stocks Moving The Insurance Industry Upward

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 196 points (1.1%) at 17,361 as of Monday, Feb. 2, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,282 issues advancing vs. 826 declining with 107 unchanged.

The Insurance industry as a whole closed the day up 1.7% versus the S&P 500, which was up 1.3%. Top gainers within the Insurance industry included National Security Group ( NSEC), up 7.0%, Oxbridge Re Holdings ( OXBR), up 2.2%, Independence ( IHC), up 1.6%, Imperial Holdings ( IFT), up 1.5% and Investors Title ( ITIC), up 2.9%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Investors Title ( ITIC) is one of the companies that pushed the Insurance industry higher today. Investors Title was up $2.05 (2.9%) to $73.79 on average volume. Throughout the day, 3,937 shares of Investors Title exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in a price between $70.48-$73.79 after having opened the day at $70.48 as compared to the previous trading day's close of $71.74.

Investors Title Company, through its subsidiaries, provides title insurance to residential, institutional, commercial, and industrial properties in the United States. Investors Title has a market cap of $143.0 million and is part of the financial sector. Shares are down 3.3% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Investors Title a buy, no analysts rate it a sell, and none 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.

TheStreet Ratings rates Investors Title as a buy. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on ITIC go as follows:

  • ITIC 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.
  • INVESTORS TITLE CO 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, INVESTORS TITLE CO increased its bottom line by earning $7.08 versus $5.25 in the prior year.
  • The revenue fell significantly faster than the industry average of 21.7%. Since the same quarter one year prior, revenues fell by 12.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for INVESTORS TITLE CO is currently extremely low, coming in at 12.85%. It has decreased significantly from the same period last year. Regardless of the weak results of the gross profit margin, the net profit margin of 8.79% is above that of the industry average.
  • Net operating cash flow has decreased to $5.46 million or 36.21% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Investors Title 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.

If you liked this article you might like

3 Great 'Under-the-Radar' Stocks

Insider Trading Alert - ITIC, OLBK And IILG Traded By Insiders

Insider Trading Alert - CMPR, ITIC And JBHT Traded By Insiders

13 Best Small- and Mid-Cap Stocks to Buy for 2016

3 Stocks Pushing The Insurance Industry Lower