8 Insurance Stock Bargains to Consider

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 |  Includes: AEG, CNO, HIG, LNC, MET, PL, PRU, TMK
by: Rougemont
The insurance company stocks below are trading at compelling valuations. Compared to banks and other financial stocks, these insurance companies offer some of the best values for investors. They all have high book values relative to their stock price. Some of these stocks have pulled back from their highs, while others look ready to make new highs soon. These share have low PE ratios, strong balance sheets and in some cases, dividends that are likely to rise in the future. Here are the eight companies:
Hartford Financial (NYSE:HIG) is trading at $28.61. Hartford is one of the leading insurance companies in the United States. These shares have traded in a range between $18.81 to $31.08 over the past 52 weeks. The 50 day moving average is $28.32 and the 200 day moving average is $24.50. HIG earnings estimates are about $3.79 per share in 2011. This puts the PE ratio at about 7 which is very reasonable. The dividend is about 40 cents per year, which results in a yield of about 1.4%.
Lincoln National Corp. (NYSE:LNC) shares trade at $30.92 per share. Lincoln is a major insurance company based in Pennsylvania. These shares have traded in a range between $20.65 to $33.55 over the past 52 weeks. The 50 day moving average is $29.91 and the 200 day moving average is $26.18. LNC earnings estimates are about $3.78 per share in 2011. This puts the PE ratio around 8. The dividend is 20 cents per year, which results in a yield of about .7%.
MetLife, Inc. (NYSE:MET) shares trade at $45.57 per share. MetLife is a major insurance company based in New York. These shares have traded in a range between $35.38 to $48.72 over the past 52 weeks. The 50 day moving average is $46.23 and the 200 day moving average is $41.13. MET earnings estimates are about $5.17 per share in 2011. This puts the PE ratio around 9. The dividend is 74 cents per year, which results in a yield of about 1.7%.
Prudential Financial, Inc. (NYSE:PRU) shares trade at $63.87 per share. Prudential is a major insurance company based in New Jersey. These shares have traded in a range between $48.56 to $67.52 over the past 52 weeks. The 50 day moving average is $62.42 and the 200 day moving average is $56.16. PRU earnings estimates are about $6.47 per share in 2011. This puts the PE ratio around 9. The dividend is $1.15 per year, which results in a yield of about 1.8%.
Aegon NV (NYSE:AEG) shares trade at $7.75 per share. Aegon is a major insurance company based in the Netherlands. These shares have traded in a range between $5.05 to $7.81 over the past 52 weeks. The 50 day moving average is $7.10 and the 200 day moving average is $6.21. AEG earnings estimates are about $1 per share in 2011. This puts the PE ratio around 8.
Protective Life (NYSE:PL) shares trade at $28.18 per share. Protective Life is a major insurance company based in Alabama. These shares have traded in a range between $18.18 to $29.54 over the past 52 weeks. The 50 day moving average is $28.15 and the 200 day moving average is $23.54. PL earnings estimates are about $3.17 per share in 2011. This puts the PE ratio around 9. The dividend is 56 cents per year, which results in a yield of about 2%.
Torchmark Corp. (NYSE:TMK) shares trade at $65.36 per share. Torchmark is a major insurance company based in Texas. These shares have traded in a range between $47.30 to $65.82 over the past 52 weeks. The 50 day moving average is $62.56 and the 200 day moving average is $55.87. TMK earnings estimates are about $6.92 per share in 2011. This puts the PE ratio around 9. The dividend is 64 cents per year, which results in a yield of about 1%.
CNO Financial Group, Inc. (NYSE:CNO) shares trade at $7.26 per share. CNO is a major insurance company based in Indiana. These shares have traded in a range between $4.30 to $7.47 over the past 52 weeks. The 50 day moving average is $6.76 and the 200 day moving average is $5.81. Since these shares are extended past the 50 and 200 day moving average, I would wait for pullbacks to $6.75 or less. CNO earnings estimates are about 69 cents per share in 2011. This puts the PE ratio around 10.
I think any pullbacks in some of these names represents a solid buying opportunity.
The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.