Genworth Financial (GNW) has been featured on my blog Financial Tides, has been in my Jim Van Meerten/BarChart S&P 500 fund on Marketocracy for a few weeks and has been a great performer lately. GNW is a comeback story. Lately some of the rating agencies have given them a bad rap, but we know the poor record the rating agencies have had recently.
GNW is in the "Lifestyle Protection" business. That's the new fancy name for insurance that protects income: Life Annuities, Disability, Long Term Care and Life Insurance. It has some major competition in Allianz (AZ), ING, AIG & AXA. The whole industry is poised to make a comeback because of a flight from securities to safety and as the investment climate brightens so should GNW's bottom-line.
Why am I so high on GNW when the rating agencies aren't:
1 - GNW recently was awarded a BIG contract with the Teacher's Retirement Fund of Texas - one of the largest retirement funds in the US to provide Long Term care for its members.
2 - BarChart has it rated as a 96% BUY with 12 of its 13 technical indicators a BUY and only one hold.
3 - The stock has hit 10 new highs in the last 20 trading sessions for a monthly gain of 46%
Recommendation: BUY - presently trading at around 11 and I'd place a protective stop at its 50 Day Moving Average at 8. Move the stop up as the stock rises but sell if it trades below its 50 DMA.
Disclosure: I have no postions in GNW Genworth Financial at time of posting.