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5-Star Stocks Poised to Pop: Endurance Specialty Holdings

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurer Endurance Specialty Holdings (NYSE: ENH  ) has earned a coveted five-star ranking.

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

Endurance facts

Headquarters (Founded) Pembroke, Bermuda (2001)
Market Cap $1.36 billion
Industry Reinsurance
Trailing-12-Month Revenue $2.03 billion
Management

CEO David Somers Cash (since 2010)

CFO Michael McGuire (since 2006)

Return on Equity (Average, Past 3 Years) 9.7%
Cash/Debt $1.05 billion / $613.4 million
Dividend Yield 3.6%

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

On CAPS, 96% of the 226 members who have rated Endurance believe the stock will outperform the S&P 500 going forward. These bulls include gameguru and steprightup.  

A few months ago, gameguru summed up the Endurance bull case:

A diversified insurance/reinsurance company doing most of its business in the US. ... They have a track record of careful underwriting with a historic combined ratio of about 90%. This year has seen some serious catastrophes, but should provide long-term opportunity.

In fact, Endurance currently sports a particularly paltry price-to-book of 0.5. That represents a clear discount to industry peers like Travelers (NYSE: TRV  ) (0.8), ACE (NYSE: ACE  ) (0.9), and Chubb (NYSE: CB  ) (1.1).

CAPS member steprightup elaborates on the bargain opportunity:

Trading at a deep discount to book value ... the stock price is not exemplifying the true value of the company. A famous investor who followed the approach of purchasing baskets of insurance companies at a discount to book value was Shelby Cullom Davis. With the approach on average being a success, I don't see why concentrating on a single insurance company of this type to be a bad investment going forward. Management seems to be of a conservative nature and despite my opinion of the interest rates for U.S. Treasuries, the mix of fixed maturity investments is relatively sound.

What do you think about Endurance, 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!

Interested in another easy way to track Endurance? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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Brian Pacampara
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I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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8/29/2014 4:00 PM
ENH $58.07 Up +0.48 +0.83%
Endurance Specialt… CAPS Rating: ****
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