Recs

1

4-Star Stocks Poised to Pop: Montpelier Re

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty reinsurer Montpelier Re Holdings (NYSE: MRH  ) has earned a respected four-star ranking.

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

Montpelier facts

Headquarters (Founded)

Pembroke, Bermuda (2001)

Market Cap

$1.15 billion

Industry

Reinsurance

Trailing-12-Month Revenue

$740.5 million

Management

President/CEO Christopher Harris (since 2008)

CFO Michael Paquette (since 2008)

Return on Equity (Average, Past 3 Years)

9.5%

Cash/Debt

$323.1 million / $327.8 million

Dividend Yield

2.2%

Competitors

Aspen Insurance (NYSE: AHL  )

PartnerRe (NYSE: PRE  )

RenaissanceRe (NYSE: RNR  )

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

On CAPS, 96% of the 2,400 members who have rated Montpelier believe the stock will outperform the S&P 500 going forward. These bulls include dmspiff and All-Star NeedaClue7, who is ranked in the top 20% of our community.

Earlier this year, dmspiff listed several of Montpelier's positives: "Great management, reasonable valuations, clean balance sheet. Disaster claims impossible to predict but considering the managements discipline ... this is likely to be a good pick for the long-haul."

Currently, Montpelier even sports a cheapish forward P/E of 7.8. That represents a slight discount to other reinsurance stocks like Aspen (8.5), PartnerRe (9.3), and RenaissanceRe (8.7).

CAPS All-Star NeedaClue7 elaborates on the Montpelier bull case:

After several benign hurricane seasons, the market seems to be getting past its aversion to this stock which originated with their large underwriting losses from Hurricane Katrina. MRH seems on a run to return to more traditional reinsurance company valuation levels which could lead to a mid-$20's stock value .... After that, MRH has to show that it can continue a disciplined approach to pricing and, of course, can diversify its risk portfolio so another Katrina event doesn't happen. I believe they have the right people in place to succeed on all counts.

What do you think about Montpelier -- 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. Motley Fool newsletter services have recommended Montpelier Re. 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 Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | 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.

Be the first one to comment on this article.

DocumentId: 1496791, ~/Articles/ArticleHandler.aspx, 4/19/2014 6:15:42 PM

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...

Brian Pacampara
TMFEZMagic

Today's Market

updated 1 day ago Sponsored by:
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASD 4,095.52 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/17/2014 4:01 PM
MRH $30.51 Up +0.36 +1.19%
Montpelier Re Hold… CAPS Rating: *****
AHL $44.45 Down -0.94 -2.07%
Aspen Insurance Ho… CAPS Rating: *****
PRE $102.67 Up +0.31 +0.30%
PartnerRe Ltd. CAPS Rating: *****
RNR $101.32 Up +0.45 +0.45%
RenaissanceRe Hold… CAPS Rating: ***

Special Offer for Savvy Investors Like You!

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut semper dui vitae molestie venenatis. Suspendisse.

Enter Email Address:



Privacy / Legal Information
Advertisement