5-Star Stocks Poised to Pop: Meadowbrook Insurance

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurer Meadowbrook Insurance Group (NYSE: MIG  ) has earned a coveted five-star ranking.

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

Meadowbrook facts

Headquarters (Founded) Southfield, Mich. (1955)
Market Cap $498.8 million
Industry Property and casualty insurance
Trailing-12-Month Revenue $837.2 million
Management CEO Robert Cubbin (since 2002)
CFO Karen Spaun (since 2003)
Return on Equity (Average, Past 3 Years) 10.1%
Cash/Debt $1.5 billion / $109.3 million
Dividend Yield 2%
Competitors American Financial Group
The Travelers Companies
W.R. Berkley

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 170 members who have rated Meadowbrook believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star joryko, tapped the stock as a timely bargain pick:

[Meadowbrook] was crushed in the end of January but still has a strong outlook of $1-1.2 EPS in 2012. Dropped down to a forward P/E of 9 and a 5 year PEG around 1. Maintains a manageable debt position and a nice dividend around 2%. Largely an unsexy pick but paired with revenue growth and a few strong quarters of earnings I believe Meadowbrook could bounce back to $12-13 within a year.

What do you think about Meadowbrook, 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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of W.R. Berkley. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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