Stocks that Benjamin Graham would love
Another insurer that I think would appeal to Graham is Lincoln National Corp. The Radnor, Pennsylvania, company sells life insurance, LTC policies and various types of group coverage. It also has a large financial services component.
Lincoln National did suffer a loss during the recession. But now Lincoln is coming back. This year revenue should exceed $10 billion, a level last seen in 2007. Analysts estimate that Lincoln will report fully diluted earnings per share of $2.66 this year, compared with a loss of $1.85 last year. Were Graham alive today, I think his eyes would light up to see that Lincoln National sells for 0.6 times official book value, and 0.9 times tangible book value. [Photo: Bloomberg News]