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Relatively Low Forward Earnings Yield Detected in Shares of Alleghany in the Reinsurance Industry (Y, ESGR, RGA, PRE, RNR)

By Amy Schwartz

Below are the three companies in the Reinsurance industry with the lowest forward earnings yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.

Alleghany ranks lowest with a forward earnings yield of 5.8%. Following is Enstar Group with a forward earnings yield of 6.8%. Reinsurance Group of America ranks third lowest with a forward earnings yield of 7.5%.

PartnerRe follows with a forward earnings yield of 8.2%, and RenaissanceRe Holdings rounds out the bottom five with a forward earnings yield of 8.6%.

SmarTrend recommended that subscribers consider buying shares of RenaissanceRe Holdings on July 1st, 2016 as our technology indicated a new Uptrend was in progress when shares hit $116.96. Since that recommendation, shares of RenaissanceRe Holdings have risen 3.0%. We continue to monitor RenaissanceRe Holdings for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest forward earnings yield alleghany enstar group reinsurance group of america partnerre renaissancere holdings