Why PartnerRe Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, reinsurer PartnerRe (NYSE: PRE  ) has earned a coveted five-star ranking.

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

PartnerRe facts

Headquarters (founded)

Pembroke, Bermuda (1993)

Market Cap

$4.9 billion

Industry

Reinsurance

Trailing-12-Month Revenue

$5.7 billion

Management

CEO Costas Miranthis (since 2011)
CFO William Babcock (since 2010)

Return on Equity (average, past 3 years)

8.7%

Cash/Debt

$16.9 billion / $821.0 million

Dividend Yield

3.1%

Competitors

Arch Capital (NASDAQ: ACGL  ) Everest Re (NYSE: RE  ) XL Group (NYSE: XL  )

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

On CAPS, 96% of the 169 members who have rated PartnerRe believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star JPresbrown, succinctly summed up the PartnerRe bull case for our community:

Insurance stocks have been on a tear lately, but even near its 52-week high this quality company is selling at a P/E of 6 and a PE/Growth ratio of less than one. It's also one of the few stocks you can buy for less than book value. The stock offers a reasonable [3% dividend yield] and the dividend has been increased an average of 8% annually over the last decade.

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. Of course, despite its five-star rating, PartnerRe may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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


Read/Post Comments (1) | Recommend This Article (1)

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 December 24, 2012, at 11:39 AM, CentreCat wrote:

    IMHO, PartnerRe is the best investment among the Bermuda-based underwriting entities. It sports a balance sheet of unquestioned strength and has an unblemished record of annual dividend increases since the reinsurer went public in 1993. With its shares selling at a significant discount to tangible book value, the company is aggressively repurchasing its equity. Moreover, the company has recently completed an acquisition which we believe will be additive to earnings in 2013. We expect Partner's stock price to exceed $100 sometime during 2013.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2168006, ~/Articles/ArticleHandler.aspx, 10/2/2014 1:00:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement