New Lifetime High Today: Allied World Assurance Co Holdings (AWH)

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.

Trade-Ideas LLC identified Allied World Assurance Co Holdings ( AWH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Allied World Assurance Co Holdings as such a stock due to the following factors:

  • AWH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.1 million.
  • AWH has traded 5,271 shares today.
  • AWH is trading at a new lifetime high.

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More details on AWH:

Allied World Assurance Company Holdings, AG, through its subsidiaries, provides property, casualty, and specialty insurance and reinsurance solutions worldwide. It operates through three segments: North American Insurance, Global Markets Insurance, and Reinsurance. The stock currently has a dividend yield of 2.1%. AWH has a PE ratio of 1. Currently there are 2 analysts that rate Allied World Assurance Co Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Allied World Assurance Co Holdings has been 477,200 shares per day over the past 30 days. Allied World Assurance Co has a market cap of $4.1 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.48 and a short float of 0.6% with 1.94 days to cover. Shares are up 13.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Allied World Assurance Co Holdings 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, solid stock price performance, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 4.3%. 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.
  • Although AWH's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • Net operating cash flow has slightly increased to $317.58 million or 4.77% when compared to the same quarter last year. Despite an increase in cash flow, ALLIED WORLD ASSURANCE CO AG's average is still marginally south of the industry average growth rate of 14.45%.
  • 38.71% is the gross profit margin for ALLIED WORLD ASSURANCE CO AG which we consider to be strong. Regardless of AWH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AWH's net profit margin of 18.87% compares favorably to the industry average.

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