Why Genworth 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, financial services company Genworth Financial (NYSE: GNW  ) has earned a respected four-star ranking.

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

Genworth facts

Headquarters (founded)

Richmond, Va. (2003)

Market Cap

$4.9 billion

Industry

Multi-line insurance

Trailing-12-Month Revenue

$10.0 billion

Management

CEO Thomas McInerney (since January 2013)
CFO Martin Klein (since May 2011)

Return on Equity (average, past 3 years)

1.9%

Cash / Debt

$5.5 billion / $9.3 billion

Competitors

MetLife
Prudential Financial 

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

On CAPS, 91% of the 737 members who have rated Genworth believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, InveniamViam, tapped Genworth as a particularly attractive bargain opportunity:

As everyone knows, Genworth shares have been heavily punished due to the losses from the [mortgage insurance] business. I would say shareholders are giving the MI division a negative value currently because of prior reserve increases to cover rather enormous losses. When their MI business achieves profitability again (which should be within a few quarters), you will see this stock move very quickly toward book value. ... My view is the new leadership will be laser focused on returning the businesses to profitability, and then moving to the next phase of their business transition plan (permanently breaking the MI company apart from the insurance companies). I would look to sell any real shares at around tangible book value, which was just under $24 a share last I looked.

With so much of the financial industry getting bad press these days, it may be a greedy-when-others-are-fearful moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar bank that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.

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


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