Zacks Investment Research upgraded
Platinum Underwriters Holdings Ltd.
) to a Zacks Rank #1 (Strong Buy) on April 10, 2014.
Why the Upgrade?
Platinum Underwriters has been witnessing upward estimate
revisions on the back of consistent capital deployment
initiatives of the company. Returning of significant capital to
shareholders has been of prime importance to the company that
drove bullish sentiment leading to a 0.5% increase in the Zacks
Consensus Estimate for full-year 2014 to $4.38 per share over the
last 30 days.
Platinum Underwriters has consistently paid dividends and
increased its share repurchases over the years to boost
shareholders' value and retain their confidence. The company's
share repurchases increased 22.2% in 2012 and a substantial
162.1% in 2013. Going forward, share repurchases are expected to
increase further thereby reducing share count and enhancing
earnings per share.
Platinum Underwriters is scheduled to report first-quarter 2014
earnings results on April 16, 2014, after the closing bell.
Notably, the Zacks Consensus estimate for the first quarter is
pegged at $1.24 per share. The combination of Platinum
Underwriters' Zacks Rank #1 and a positive
(Expected Surprise Prediction) of 12.10% keeps us optimistic
about an earnings beat in the first quarter of 2014.
Platinum Underwriters' fourth-quarter 2013 results also
successfully exceeded the Zacks Consensus Estimate. With respect
to earnings trend, performance of this property and casualty
insurer has been impressive, as it delivered positive earnings
surprises in all of the last four quarters with an average beat
of 42.86%. Also, the long-term growth rate for the stock is
In fact, shares of the company also showed significant upward
movement since it reported fourth-quarter 2013 results,
increasing 8.1% to $59.99 per share on April 9, 2014. Moreover,
the 1-year return from the stock is 8.66%.
Other Stocks to Consider
Other players in the property and casualty insurance space which
look attractive at current levels include
EMC Insurance Group Inc.
Fidelity National Financial, Inc.
). All three stocks carry the same Zacks Rank as Platinum
EMC INSURANCE (EMCI): Free Stock Analysis
FIDELITY NAT FI (FNF): Free Stock Analysis
PLATINUM UNDRWT (PTP): Free Stock Analysis
ALLEGHANY CORP (Y): Free Stock Analysis
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