Why HCC Insurance Is Poised to Keep Popping
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty insurance underwriter HCC Insurance Holdings has earned a coveted five-star ranking.
With that in mind, let's take a closer look at HCC and see what CAPS investors are saying about the stock right now.
Houston, Texas (1974)
CEO Christopher Williams (since 2012)
Return on Equity (average, past 3 years)
Cash / Debt
$434.4 million / $583.9 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93%of the 197 members who have rated HCC believe the stock will outperform the S&P 500 going forward.
In a challenging interest rate environment, underwriting profit is essential. HCC has some of the lowest combined ratios in the insurance biz, and the company philosophy is explicitly focused on book value growth and maintaining underwriting profitability. At $42 it's underpriced with a margin of safety according to my calculations.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, HCC may not be your top choice.
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The article Why HCC Insurance Is Poised to Keep Popping originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of W.R. Berkley. 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 Motley Fool has a disclosure policy.