According to Barchart, AmTrust Financial (NASDAQ:AFSI) is having very positive and consistent price momentum and I added it yesterday to my Barchart Van Meerten New High portfolio. The stock recently hit 17 new highs and is up 17.77% in the last month. The company sells most of its insurance policies through 3rd party agent brokers so it has a variable costs for its sales expenses. I like the stock on its price momentum alone (click to enlarge image):
AmTrust Financial is a multinational property and casualty insurer specializing in coverage for small businesses. They offer workers' compensation insurance, extended warranty coverage, specialty middle market property and casualty insurance and a host of related products and services.They have built a reputation as an innovative, technology driven insurance company. Their commitment to excellence is the common thread connecting each of our businesses.
Barchart Technical Indicators:
- 100% Barchart technical buy signal
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 17 new highs and up 17.77% in the last month
- Relative Strength Index 90.22% and still rising
- Trades around 22.64 with a 50 day moving average of 19.48
- Wall Street brokerage analysts have published 2 strong buy and 5 buy recommendations with no negative reports
- Sales are projected to increase by 18.40% this year and another 13.90% next year
- Earnings forecasts are equally aggressive with increase of 16.40% this year and another 6.10% next year expected. Analysts also look for the earnings to increase by 13.50% annually for the next 5 years
General Investor Sentiment:
- The stock has a following on Motley Fool with 847 readers expressing an opinion
- The CAPS members vote 617 to 13 that the stock will beat the market
- The more experienced All Stars are even more positive with a 215 to 2 vote for the same result
Summary: As insurance and financial stocks start to gain favor again with investors AmTrust Financial should do well. With analysts making double digit projections for increases in sales and earning, this stock deserves a place on your watch lists.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.