Endurance Specialty Holdings Ltd. (NYSE:ENH)
CAPS Rating:
The Company focuses on underwriting specialty lines of personal and commercial property and casualty insurance and reinsurance on a global basis.
The Company focuses on underwriting specialty lines of personal and commercial property and casualty insurance and reinsurance on a global basis.
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Recs
ENH part of the insurance sector which I believe on a whole is very undervalued. They have good return on their equity currently at 23%. Based on the average of analysts earnings estimates for this stock I valued their Discounted Cash Flow at $60 currently. The analysts forcasts for earnings have been increasing and it is trading at close to it's all time low P/E. ENH is more risky then most stocks due to it's exposure to catastrophe claims but has taken steps to reduce this isssue by diversifying it's lines of coverage. I bought this stock today and I think that due to technical factors it could drop slightly more. Since I will be holding this for the long term I didn't feel compelled to try and time the exact bottom of the price since it is already so undervalued.