4-Star Stocks Poised to Pop: Montpelier Re

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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



Trailing-12-Month Revenue

$740.5 million


President/CEO Christopher Harris (since 2008)

CFO Michael Paquette (since 2008)

Return on Equity (Average, Past 3 Years)



$323.1 million / $327.8 million

Dividend Yield



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.

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Related Tickers

12/31/1969 7:00 PM
MRH.DL $0.00 Down +0.00 +0.00%
Montpelier Re Hold… CAPS Rating: ****
AHL $49.19 Up +0.15 +0.31%
Aspen Insurance Ho… CAPS Rating: *****
PRE.DL $0.00 Down +0.00 +0.00%
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RNR $121.92 Down -0.12 -0.10%
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