On May 21, Zacks Investment Research upgraded Homeowners
Choice, Inc . ( HCI ) to a Zacks Rank
#1 (Strong Buy).AXIS CAP HLDGS (AXS): Free Stock Analysis
ReportHOMEOWNERS CHCE (HCI): Free Stock Analysis
ReportMONTPELIER RE (MRH): Free Stock Analysis ReportPLATINUM UNDRWT (PTP): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment
Why the Upgrade?
Homeowners Choice witnessed rising earnings estimates on the back
of strong first-quarter 2013 results. Moreover, this property and
casualty insurer delivered positive earnings surprises in the last
4 quarters with an average beat of 40.2%.
Homeowners Choice reported first-quarter results on May 2.
Non-GAAP earnings per share came in at $1.81, surpassing the Zacks
Consensus Estimate of $1.09 by 66.1% and year-ago earnings of 88
cents by 105.7%.
Earnings were primarily aided by solid growth in top line and a
5.4% decrease in total expense.
Top line improved 48.4% year over year and exceeded the Zacks
Consensus Estimate by 47.6%.
Policies assumed from Citizens Property Insurance Corporation in
Nov 2012 aided a substantial improvement in gross premiums
Loss ratio improved to 26.2% from 47.4% in the year-ago
Homeowners Choice also boasts a dividend yield of 2.68%, comparing
favorably with the industry average of 2.01%.
The Zacks Consensus Estimate for 2013 increased 32.9% to $4.12 per
share as 1 of 2 estimates was revised higher over the last 30 days.
It also represents a year-over-year improvement of 26.3%. The Zacks
Consensus Estimate for 2014 is currently pegged at $3.55.
Other Stocks to Consider
Apart from Homeowners Choice, other stocks that are outperforming
in the property and casualty industry include AXIS Capital
Holdings Ltd . ( AXS ), Platinum
Underwriters Holdings Ltd. ( PTP ) and
Montpelier Re Holdings Ltd. ( MRH ). All these stocks
carry a Zacks Rank #1 (Strong Buy).