Buckingham's Banking Bets for Value Investors


John Buckingham Image John Buckingham Editor, The Prudent Speculator

We are not banking on a significant acceleration of economic growth, nor do we think corporate tax relief will be easily won on Capitol Hill, but we continue to believe that equities in general and our stocks in particular are reasonably priced, especially given the historically low interest-rate environment, notes value investing expert John Buckingham, editor The Prudent Speculator.

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We understand that pullbacks, downturns and corrections are a normal part of the investment process, while we know that geopolitical news can trigger a sizable sell-off at any time, but we see no reason to alter our long-term optimism.

That doesn’t mean that we won’t keep a little dry powder for new opportunities that will inevitably arise, but we believe that time in the market always trumps market timing. Meanwhile, here's a look at two of our recent recommendations — both in the financial sector.

Axis Capital Holdings (AXS)

Axis is a global insurer, offering a diversified portfolio of specialty commercial property and casualty insurance and reinsurance, emphasizing high severity and low frequency business. Axis represents a solid specialty franchise with an experienced management team.

We like that leadership is focused on controlling costs and bringing specialist underwriting to new target markets, as well as creating more business balance and decreasing volatility.

Q2 adjusted EPS of $1.31 topped consensus estimates of $1.19.