Riding on a steady growth momentum, shares of
Greenlight Capital Re Ltd.
) scaled a new 52-week high at $35.09 on Sep 3, following solid
year-over-year performance in second-quarter 2014.
Consistent improvement in core operations have been fuelling a
positive impetus for this Zacks Rank #3 (Hold) stock.
Notably, this property-casualty reinsurer's shares rose about 5.3%
since the beginning of 2014.
Yesterday's closing price represents a strong one-year return of
about 30.0%, against 27.4% clocked by the Nasdaq index. Average
volume of shares traded over the last three months stands at
approximately 130.5K, while about 170.3K shares exchanged hands in
yesterday's trading session.
On Aug 4, Greenlight Capital reported second-quarter 2014
operating earnings per share (EPS) of $2.89, after posting a loss
in the previous quarter. EPS was also higher than 76 cents in the
year-ago quarter, although it fell short of the Zacks Consensus
Estimate of $3.01 by 4%.
The year-over-year upsurge was led by higher investment income
that grew about 370%. Results also benefited from lower loss and
loss adjusted expenses as well as acquisitions costs, overall
reducing total expense by about 30%. As a result, book value per
share and liquidity witnessed improvement.
Despite a challenging competitive underwriting environment,
Greenlight Capital boasts of a strong pipeline of lucrative
business opportunities that are likely to drive growth going
forward. Moreover, the company's investment portfolio is benefiting
from buoyant equity markets.
Greenlight Capital's focus on conservative risk management
initiatives are also showing results, as reflected in its improved
investment and cash position, along with a debt-free balance sheet.
Overall, these factors instill confidence in investors and score
well with ratings agencies too.
Stocks to Consider
Investors interested in insurance stocks could consider AmTrust
Financial Services Inc. (
),Global Indemnity plc (
) and Mercury General Corp. (
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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