8 Dangerous Insurance Stocks to Sell

by Louis Navellier | January 12, 2012 6:00 am

I’ve discussed before how insurance stocks are tricky businesses[1]. And, despite the recent gains in the market, there are still many insurance stocks that have a long ways to go before they get on my buy list. The financial industry has been stuck in a rut for quite some time now and I would recommend steering clear of this industry.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[2] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve got eight insurance stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

AIG (NYSE:AIG[3]) offers various forms of insurance to customers in 130 countries. In the last year, AIG has posted staggering losses of 57%. AIG gets an “F” for sales growth, an “F” for earning momentum, an “F” for the magnitude in which earnings projections have increased over the past month, a “D” for cash flow and an “F” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of AIG stock[4].

Allstate (NYSE:ALL[5]) is known best for personal property, casualty and life insurance, along with retirement and investment products business. In the last year ALL stock has dipped 7%. ALL gets a “D” for sales growth, an “F” for operating margin growth, a “D” for earnings growth, an “F” for earnings momentum, an “F” for the magnitude in which earnings projections have increased over the past month, a “D” for cash flow and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of ALL stock[6].

Hartford Financial Services Group (NYSE:HIG[7]) is another is an insurance and financial services company that makes the list with a loss of 36% in the last 52 weeks. HIG gets an “F” for sales growth, a “D” for operating margin growth, an “F” for earnings momentum, an “F” for earnings growth, an “F” for its ability to exceed the consensus earnings estimates on Wall Street, an “F” for the magnitude in which earnings projections have increased over the past month and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of HIG stock[8].

Lincoln Financial (NYSE:LNC[9]) offers a variety of wealth protection, accumulation and retirement income products and solutions. Since this time last year, LNC stock has dipped 26%. LNC stock gets a “D” for sales growth, a “D” for earnings growth and a “D” for earnings momentum in my Portfolio Grader tool. For more information, view my complete analysis of LNC stock[10].

Manulife Financial (NYSE:MFC[11]) is known mostly for the life insurance it provides in 22 countries. MFC is down 35% in the last year. MFC gets an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of MFC stock[12].

Old Republic International (NYSE:ORI[13]) is involved with the business of insurance underwriting. Since this time last January, ORI stock has slid 30%. ORI gets an “F” for operating margin growth, an “F” for earnings momentum, an “F” for the magnitude in which earnings projections have increased over the past month, an “F” for cash flow and an “F” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of ORI stock[14].

Principal Financial Group (NYSE:PFG[15]) deals with retirement savings, investment and insurance products and services. PFG stock is down 19% in the last year. PFG gets an “F” for sales growth, a “D” for earnings growth, an “F” for its ability to exceed the consensus earnings estimates on Wall Street and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of PFG stock[16].

Unum Group (NYSE:UNM[17]) is known mostly for its life insurance and accident insurance subsidiaries. UNM rounds out the list with a loss of 12% since last January. UNM gets a “D” for sales growth and a “D” for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of UNM stock[18].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[19] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.

Endnotes:
  1. how insurance stocks are tricky businesses: http://investorplace.com/2011/11/insurance-all-aig-ago-lfc-gnw-ori-pre-ptp-thg/
  2. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  3. AIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=AIG
  4. For more information, view my complete analysis of AIG stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=aig&submit=submit&type=site
  5. ALL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALL
  6. For more information, view my complete analysis of ALL stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=all&submit=submit&type=site
  7. HIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=HIG
  8. For more information, view my complete analysis of HIG stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=HIG&submit=submit&type=site
  9. LNC: http://studio-5.financialcontent.com/investplace/quote?Symbol=LNC
  10. For more information, view my complete analysis of LNC stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=lnc&submit=submit&type=site
  11. MFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=MFC
  12. For more information, view my complete analysis of MFC stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=mfc&submit=submit&type=site
  13. ORI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORI
  14. For more information, view my complete analysis of ORI stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ori&submit=submit&type=site
  15. PFG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PFG
  16. For more information, view my complete analysis of PFG stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=PFG&submit=submit&type=site
  17. UNM: http://studio-5.financialcontent.com/investplace/quote?Symbol=UNM
  18. For more information, view my complete analysis of UNM stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=unm&submit=submit&type=site
  19. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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