On Apr 9, Zacks Investment Research upgraded
Platinum Underwriters Holdings Limited
) to a Zacks Rank #1 (Strong Buy).
ARCH CAP GP LTD (ACGL): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
CINCINNATI FINL (CINF): Free Stock Analysis
PLATINUM UNDRWT (PTP): Free Stock Analysis
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Why the Upgrade?
Platinum Underwriters has been witnessed rising earnings
estimates since it reported solid fourth-quarter results. The
company delivered positive earnings surprises in 3 out of 4
quarters in 2012 with an average beat of 46.27%. The long-term
expected earnings growth rate for this stock is 8%.
Platinum Underwriters reported a net income of $327.2 million
2012, rebounding from a loss of $224.1 million in 2011. In
addition, combined ratio also improved significantly in 2012.
Results largely benefited from strong reserve releases and
realized gains as well as moderate catastrophe losses.
The year-to-date return for the stock came in at 22.21%, way
above the S&P 500 return of 11.33%.
Platinum Underwriters continues to increase shareholders' value
through dividend payouts and share repurchases. In 2012, the
company deployed $115.7 million to repurchase 3.1 million shares.
It also paid quarterly cash dividends of 8 cents in 2012.
Additionally, due to the absence of any significant catastrophe
event in the first quarter, the company's underwriting
performance is expected to deliver better results.
Platinum Underwriters is scheduled to release its first-quarter
2013 earnings results on Apr 17. The Zacks Consensus Estimate for
the first quarter is currently pegged at $1.16 increasing 17.5%
over the last 60 days and reflecting a year-over-year improvement
Other Stocks to Consider
Other property and casualty insurers like
Arch Capital Group Ltd.
Cincinnati Financial Corporation
AXIS Capital Holdings Limited
), carry a Zacks Rank #1 (Strong Buy) and are worth noting.