(ACAP) - has a price-to-book ratio of only 1.6, compared to 5.0 for the market

American Physicians Capital, Inc. (ACAP), a Zacks #1 Rank stock, exceeded analysts' earnings expectations over the past five quarters by an average margin of 20.8%. Consensus estimates have been trending higher. The Board of Directors recently upped its share repurchase program. ACAP has a price-to-book ratio of only 1.6, compared to 5.0 for the market. Full Analysis American Physicians Capital, Inc., through its subsidiaries, provides medical professional liability insurance in the United States. The company is focused primarily in the Midwest, with Michigan, Illinois, Ohio, Kentucky and New Mexico serving as its core states. ACAP has a solid history of exceeding analysts' earnings expectations. Over the past five quarters in which the company beat the Street's estimate, its average margin of surprise was an impressive 20.8%. On Jul 25, ACAP posted second-quarter profits $1.19 cents per share. With analysts calling for 95 cents per share, the company topped estimates by a robust 25.3%. President and Chief Executive Officer R. Kevin Clinton stated, “We are very pleased with the continued success of the company. Our business plan is working as we remain competitive in the marketplace while maintaining profitability and maximizing shareholder value.” Clinton's mention of maximizing shareholder value is evident in the company's stock repurchase program. ACAP repurchased 293,100 shares of its common stock during the second quarter and 420,600 shares in the first six months of 2006. Furthermore, on Aug 22, the Board of Directors boosted its stock buyback plan to $30 million, up from the $20 million plan authorized in April. Looking ahead, the company stated it is becoming more aggressive in selected markets where it can grow profitability and remains watchful for other opportunities to increase shareholder value. ACAP's return on equity, or a common measure of a company's level of profitability, tops that of the industry average—13% compared to 11%. Analysts' earnings estimates have been climbing higher. The consensus estimate for this quarter currently sits at $1.03 and represents a 9.6% increase when compared to the consensus of 90 days ago. Profit forecasts for the full year of 2006 jumped by an even greater magnitude—13.9% to $4.33. The company is currently trading at a valuation of 12.1x trailing 12-month earnings and at 11.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.5x trailing 12-month earnings and at 15.8x its current fiscal-year estimated earnings. ACAP has a price-to-book ratio of only 1.6, compared to 5.0 for the market. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home