(PRA) - Company was named to Forbes "100 Best Mid-Cap Stocks" once again this year

ProAssurance Corporation (PRA), a Zacks #1 Rank stock, beat analysts' earnings expectations in seven out of the past nine quarters by an average margin of 13.4%. The company completed its merger with Physicians Insurance Company of Wisconsin, Inc. on Jul 31 and it is expected to fuel premium growth going forward. Profit forecasts have been on the rise. PRA has a price-to-book ratio of 1.7, compared to 5.2 for the market. Full Analysis ProAssurance Corporation, through its subsidiaries, engages in the sale of professional liability insurance primarily to physicians, dentists, healthcare facilities and other healthcare providers in the mid-Atlantic, Midwest and Southeast United States. The company is the nation's fourth-largest writer of medical professional liability insurance. PRA exceeded analysts' earnings expectations in seven out of the past nine quarters by an average margin of 13.4%. In the two quarters in which the company failed to surprise to the upside it did manage to match estimates. On Aug 8, PRA posted second-quarter profits of $30.0 million, or 90 cents per share. With analysts calling for 80 cents, the company beat estimates by a solid 12.5%. Compared to the prior-year period, earnings were two cents better. Gross and net premiums written were up 2.7% and 5.3%, respectively, when compared to the second quarter of 2005. PRA's merger with Physicians Insurance Company of Wisconsin, Inc. closed as expected on Jul 31. When reporting results for the second quarter, the company stated that integration planning has been underway for several months and is moving forward as expected. PRA will now have a market leading position in Wisconsin, while its existing business in Illinois, Iowa and Kansas will be enhanced. PRA will also be able to add business from Minnesota, Nebraska, South Dakota and Nevada as a result of the merger. The company was named to Forbes "100 Best Mid-Cap Stocks" once again this year, ranking 64th. PRA leaped 21 spots when compared to its ranking in 2005. Forbes uses such criteria as positive return on equity, sales and earnings-per-share growth over the past five years and through the latest 12 months. Companies are also required to have forecasts for at least 10% annualized earnings growth over the next three to five years. Finally, current news, business trends and changes in consensus estimates are analyzed. Speaking of consensus estimates, they are up 7.2% and 9.2%, respectively, over the past 60 days for this quarter and next quarter. For the full years of 2006 and 2007, profit forecasts have risen 7.8% and 6.6%, respectively, over the same period of time. Earnings per share are forecasted to grow 14% over the next 3-5 years, while the industry is expected to grow 12%. PRA is currently trading at a valuation of 14.9x trailing 12-month earnings and at 13.6x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.9x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.7, compared to 5.2 for the market. PRA's return on equity of 14% tops the industry average of 11%. 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