4-Star Stocks Poised to Pop: PartnerRe

Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, reinsurer PartnerRe (NYSE: PRE  ) has earned a respected four-star ranking.

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

PartnerRe facts

Headquarters (Founded)

Pembroke, Bermuda (1993)

Market Cap

$5.8 billion

Industry

Insurance

Trailing-12-Month Revenue

$4.98 billion

Management

CEO Patrick Thiele (since 2000)
CFO Albert Benchimol (since 2000)

Return on Equity (Average, Past 3 Years)

16.7%

Cash / Debt

$772 million / $521 million

Dividend Yield

2.6%

Competitors

ACE (NYSE: ACE  )
XL Capital (NYSE: XL  )

CAPS Members Bullish on PRE Also Bullish on

Apple (Nasdaq: AAPL  )
Freeport-McMoRan (NYSE: FCX  )
Valero Energy (NYSE: VLO  )

CAPS Members Bearish on PRE Also Bearish on

Everest Re (NYSE: RE  )

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

On CAPS, 95% of the 151 members who have rated PartnerRe believe the stock will outperform the S&P 500 going forward. These bulls include baselineace and All-Star mrindependent, who is ranked in the top 1% of our community.

Two weeks ago, baselineace enthusiastically informed Fools that PartnerRe "is temporarily oversold, yet bares a minute 3.3 P/E, 1.1 P/B, and 30% operating margin!" Our CAPS member concludes: "Those kind of numbers make this a strong pick over the next three months."

Just last week, mrindependent reassured investors that the stock was indeed a solid buy:

The balance sheet is excellent. Estimated earnings per share for 2009 is $13.11, which is up sharply from 2008 eps of $0.22. Expected eps for 2010 is $9.77, which yields an expected 2010 p/e multiple of 7.7. Despite the favorable environment for this reinsurer, the stock is trading below historical value. Current p/bv: 0.79. Five year median p/bv: 1.0. The stock seems timely based on its Caps rating of 4 and Stockscouter rating of 7.

What do you think about PartnerRe, 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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. The Fool's disclosure policy always gets a perfect score.


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