5-Star Stocks Poised to Pop: Validus Holdings

Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, reinsurance and insurance provider Validus Holdings (NYSE: VR  ) has earned a coveted five-star ranking.

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

Validus facts

Headquarters (Founded)

Hamilton, Bermuda (2005)

Market Cap

$3.46 billion

Industry

Insurance

Trailing-12-Month Revenue

$1.54 billion

Management

CEO Edward Noonan (since 2005)

CFO Joseph Consolino (since 2006)

Trailing-12-Month Return on Equity

26.1%

Cash/Debt

$988 million / $304 million

Dividend Yield

3%

Other Highly Rated Insurance Stocks

Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  )

Aflac (NYSE: AFL  )

CAPS Members Bullish on VR Also Bullish on

Johnson & Johnson (NYSE: JNJ  )

Procter & Gamble (NYSE: PG  )

CAPS Members Bearish on VR Also Bearish on

Chubb (NYSE: CB  )

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

On CAPS, 96.5% of the 85 members who have rated Validus believe the stock will outperform the S&P 500 going forward. These bulls include Laustcozz and All-Star greenwave3, who is ranked in the top 3% of our community.

Just last week, Laustcozz wouldn't let Fools ignore Validus' particularly paltry price: "Low P/E, Low Debt, Low P/E, Solid Dividend. Did I mention ridiculously low P/E (even for their depressed industry)?"

In a pitch from two weeks earlier, greenwave3 follows that bullish line of thinking:

[Validus] is trading at a significant discount to their already discounted peers. Cash flow is outstanding, they recently closed an accretive acquisition (and beat out Buffett's bid in the process), forward P/E relative to current price is extremely low, and they recently approved a $400 million stock buyback (more than 10% of outstanding shares at current prices). If the stock price doesn't move up, [Validus] is itself a prime target for acquisition.

What do you think about Validus, 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. Berkshire and Aflac are Motley Fool Stock Advisor picks. Berkshire is also a choice of Inside Value. Johnson & Johnson and Procter & Gamble are Income Investor selections. The Fool owns shares of Berkshire and Procter & Gamble. The Fool's disclosure policy always gets a perfect score.


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4/17/2014 4:02 PM
VR $37.60 Up +0.21 +0.56%
Validus Holdings,… CAPS Rating: ****
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