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Why Genworth Is Poised to Outperform

By Brian D. Pacampara, CFA - Apr 10, 2013 at 4:10PM

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Market-trouncing returns could be written in these four stars.

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 (GNW -1.01%) 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


Multi-line insurance

Trailing-12-Month Revenue

$10.0 billion


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

Return on Equity (average, past 3 years)


Cash / Debt

$5.5 billion / $9.3 billion


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.

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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Stocks Mentioned

Genworth Financial, Inc. Stock Quote
Genworth Financial, Inc.
$3.92 (-1.01%) $0.04

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