A few years ago investors were spoiled for choice when it came to
insurance companies. Many of these companies have since repaired their
balance sheets and returned to posting decent if not good returns. The
markets have responded, leaving investors considering names like MetLife (MET) and Arch Capital (ACGL) in a position where they are looking at longer timelines for meaningful market-beating returns.
Genworth (GNW)
is a different story. The stock has given investors a wild ride, but
the last couple of years have been pretty solid. Even with new
management and clear progress in improving its businesses, there's still
some lingering skepticism regarding Genworth and the company's ability
to return to high single-digit ROEs. Genworth has chosen to stay in
businesses that many other insurance companies have left behind, but if
Genworth's long-term ROE hits 8% or 9%, there's still upside for a stock
at its highest point in four years.
Follow this link for the full article:
Can Investors Leverage Leftover Skepticism On Genworth To Their Advantage?
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