On Oct 16, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
ACE Limited has been witnessing rising earnings estimates. The
Zacks Consensus estimate for 2013 moved north by 2% to $8.63 as 8
of 14 estimates were raised over the last 60 days.
In mid-September, Tunisian Ministry of Finance approved ACE's
plans to establish a reinsurance operation in Tunisia. This
go-ahead complements the company's effort to grow its business in
the Middle East and North Africa. The company has also been
leveraging its solid footprint in Asia and Latin America to
capitalize on the opportunities in these markets.
ACE also increased the critical catastrophe limits to $30 million
across all its North American retail and wholesale
broker-distributed commercial property lines of business.
In September, Moody's Investors Service, a wing of
) affirmed the insurance financial strength (IFS) ratings of ACE
Seguradora S.A. (ACE Seguradora), a subsidiary of ACE Limited, at
Baa1. Previously A. M. Best Co. assigned a financial strength
rating of A (Excellent) and an issuer credit rating of "a" to ACE
Seguros S.A. (ACE Seguros).
ACE Limited continues to benefit from improved commercial
property & casualty pricing environment.
The company also enjoys a solid track record of paying regular
dividends that also exhibits an increasing trend every year. Its
dividend of 51 cents per share yields 2.16%
With respect to earnings performance, ACE Limited has a track
record of delivering positive earnings surprises for 18 straight
quarters. We expect ACE Limited to deliver another positive
earnings surprise when it reports its third quarter results on
Oct 23. This is because our proven model shows that the property
and casualty insurer has the right combination of a positive
and Zacks Rank.
Expected Surprise Prediction or ESP, which represents the
difference between the Most Accurate Estimate and the Zacks
Consensus Estimate, is +6.05%. The Zacks Consensus Estimate for
the third quarter is pegged at $2.15, representing a
year-over-year improvement of 6.9%.
ACE LIMITED (ACE): Free Stock Analysis Report
ARCH CAP GP LTD (ACGL): Free Stock Analysis
AMTRUST FIN SVC (AFSI): Free Stock Analysis
MOODYS CORP (MCO): Free Stock Analysis Report
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The long-term expected earnings growth rate for this stock is
7.4% on expected sales growth of 7.7%.
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