In its March 7 special report on investing for retirement, ACE was named on Barron’s magazine’s list of ten stocks that could pay off handsomely in the future. Barron’s position is that it is essential to see past the next 12-18 months, and in doing so “we’ve picked 10 stocks that could shine over the next 10 years.”
Here’s what Barron’s had to say about ACE:
The property-casualty industry may not be glamorous, but it is clearly essential, insuring everything from airplanes to office buildings. ACE Limited (ACE), one of the largest global players in the field, "is very strong financially, and they have weathered the current environment quite well with a strong balance sheet," says Institutional Capital's [Jerry] Senser. What's more, ACE stands to benefit from AIG's woes by gaining market share and raiding its rival for talent.
By Senser's calculation, the stock trades at about 90% of its book value, compared with its historical average of 1.3 times book.
Earnings are apt to be flat this year, but Senser sees high-single-digit growth next year.