Best Stocks of the Bull Market #5: Genworth Financial (GNW)
Market Capitalization: $8.3 billion
Total Return Since 3/9/2009: 1,741%
Genworth Financial (GNW) isn’t a retail bank like some of the big names wrapped up in the financial crisis, but nonetheless was hit hard by the meltdown. Genworth’s exposure was through insurance on mortgages, and as folks were foreclosed on and loans went bad, GNW took it on the chin; the stock fell from a high of about $36 in 2007 to less than $1 per share on March 9, 2009.
But the financial crisis sparked big changes — some that were needed to deal with the shoddy financial situation brought on by bad mortgages, and some that were needed to streamline the company and adapt to a more sustainable business model.
GNW shares still are below their peak, but like Fifth Third, it is clear that Genworth is not at risk of evaporating anymore — and investors who took a flier on the stock in 2009 have been handsomely rewarded.