Trade-Ideas: Endurance Specialty Holdings (ENH) Is Today's New Lifetime High Stock

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 Endurance Specialty Holdings ( ENH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Endurance Specialty Holdings as such a stock due to the following factors:

  • ENH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.6 million.
  • ENH has traded 9,920 shares today.
  • ENH is trading at a new lifetime high.

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More details on ENH:

Endurance Specialty Holdings Ltd., through its subsidiaries, underwrites specialty lines of personal and commercial property and casualty insurance and reinsurance worldwide. It operates in two segments, Insurance and Reinsurance. The stock currently has a dividend yield of 2.1%. ENH has a PE ratio of 9. Currently there are 2 analysts that rate Endurance Specialty Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Endurance Specialty Holdings has been 260,400 shares per day over the past 30 days. Endurance Specialty has a market cap of $3.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.87 and a short float of 4.6% with 7.83 days to cover. Shares are up 11.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Endurance Specialty 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, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ENH'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.
  • 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. 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.
  • 42.17% is the gross profit margin for ENDURANCE SPECIALTY HOLDINGS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.69% significantly outperformed against the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Insurance industry average. The net income increased by 3.8% when compared to the same quarter one year prior, going from $104.48 million to $108.48 million.

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