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4-Star Stocks Poised to Pop: Aspen Insurance

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Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurer Aspen Insurance Holdings (NYSE: AHL  ) has earned a respected four-star ranking.

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

Aspen facts

Headquarters (Founded)

Hamilton, Bermuda (2002)

Market Cap

$2.3 billion

Industry

Property and casualty insurance

Trailing-12-Month Revenue

$2 billion

Management

CEO Christopher  O'Kane (since 2002)
CFO Richard Houghton (since 2007)

Return on Equity (Average, Past 3 Years)

13.2%

Dividend Yield

2.2%

Competitors

AIG (NYSE: AIG  )
Markel (NYSE: MKL  )
XL Capital (NYSE: XL  )

CAPS Members Bullish on AHL Also Bullish on

Bank of America (NYSE: BAC  )
ConocoPhillips (NYSE: COP  )

CAPS Members Bearish on AHL Also Bearish on

FedEx (NYSE: FDX  )

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

On CAPS, 95.7% of the 166 members who have rated Aspen believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars LattePup and mrindependent, both of whom are ranked in the top 5% of our community.

Three weeks ago, LattePup summed up Aspen as a quality company selling at a decent price: "good ROE, reasonable price-book, price-earnings."

And just last week, the stock also happened to pass mrindependent's screen for soundness:

The screen requires a sustainable dividend yield in excess of 2% along with a reasonable p/e ratio. Although the company's earnings appear to be recovering after a poor (but positive) performance in 2008, Aspen Insurance Holdings remains undervalued in relation to its historical norms. Current p/bv: 0.69. Five year median p/bv: 1.02. The stock is also somewhat timely judging by its CAPS rating of 4 and stockscouter rating of 9. Recent changes in analysts' earnings estimates also appear favorable.

What do you think about Aspen, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Markel is a Motley Fool Inside Value pick, and the Fool owns shares of it. FedEx is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 26, 2010, at 10:13 AM, sckboyspotatrain wrote:

    I have a ton of friends who work there; I I allowed to comment? ;)

  • Report this Comment On January 26, 2010, at 9:53 PM, aspenglow wrote:

    I have been bullish on Aspen since the summer. I thought this was a nice writeup. Another big plus is that management just announced a buyback program of 10% of outstanding shares, showing they recognize the undervalued nature of the shares trading so far below book value. This will be accretive to earnings.

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