4-Star Stocks Poised to Pop: Assurant

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty insurer Assurant (NYSE: AIZ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Assurant's business and see what CAPS investors are saying about the stock right now.

Assurant facts

Headquarters (Founded)

New York City (1969)

Market Cap

$3.64 billion

Industry

Multi-line insurance

Trailing-12-Month Revenue

$7.9 billion

Management

CEO Robert Pollock (since January 2008)

CFO Michael Peninger (since March 2009)

Return on Equity (Average, Past 5 Years)

14.2%

Dividend Yield

1.9%

Other Highly Rated Insurers

Aflac (NYSE: AFL)

Berkshire Hathaway (NYSE: BRK-A)

CAPS Members Bullish on AIZ Also Bullish on

General Electric (NYSE: GE)

Activision Blizzard (Nasdaq: ATVI)

CAPS Members Bearish on AIZ Also Bearish on

Goldman Sachs (NYSE: GS)

JPMorgan Chase (NYSE: JPM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 245 members who have rated Assurant believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars investorpoet2 and wuff3t, both of whom are ranked in the top 15% of our community.

Late last month, investorpoet2 reminded Fools that Assurant "has produced very strong and stable underwriting profits and has a conservative, fixed-income portfolio of investments." Our CAPS All-Star concludes: "Combined, these two growth engines have produced returns on equity of over 15%. … If Assurant were priced at their historical 1.75x book, they would be valued [above] $65 per share."

In a pitch from last week, wuff3t also provided our community with some quality assurance:

Long-tenured management, undervalued, and shareholder-friendly. I love the fact that they have their fingers in several pies -- and pies (niche markets) that other people regard as too messy to deal with, to boot. That means that although they face the same risks as any insurer -- having to pay out huge sums if a catastrophe strikes - those risks are diversified, so they can continue to generate cash in some areas even while potentially losing in others.

What do you think about Assurant, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Aflac, Berkshire, and Activision are all Motley Fool Stock Advisor picks. Berkshire is also an Inside Value selection, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.

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