Platinum Upgraded to Strong Buy - Analyst Blog
11 Avril 2013 - 4:30PM
Zacks
On Apr 9, Zacks Investment Research
upgraded Platinum Underwriters Holdings Limited
(PTP) to a Zacks Rank #1 (Strong Buy).
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
of 30.71%.
Other Stocks to Consider
Other property and casualty insurers like Arch Capital
Group Ltd. (ACGL), Cincinnati Financial
Corporation (CINF) and AXIS Capital Holdings
Limited (AXS), carry a Zacks Rank #1 (Strong Buy) and are
worth noting.
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis Report
CINCINNATI FINL (CINF): Free Stock Analysis Report
PLATINUM UNDRWT (PTP): Free Stock Analysis Report
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