Beating The Tide: Stock Picks That Outperform

Beating The Tide: Stock Picks That Outperform

This Financial Stock Doubled Quietly, But It’s Still Cheap

A high-ROE compounder trading at 6.4x earnings, run by CEO with serious skin in the game

George Atuan, CFA's avatar
George Atuan, CFA
Aug 06, 2025
∙ Paid
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eme featuring Homer Simpson in a nuclear control room. Top panel labeled “Without Insurance” shows chaos and fire; bottom panel labeled “With Insurance” shows Homer relaxed with a tablet. Used in a deep dive on insurance and reinsurance investing to illustrate the value of financial protection, catastrophe risk management, and why aligned leadership and underwriting discipline matter in high-risk sectors.

Some of the best-performing stocks aren’t flashy tech names or trendy AI plays. They’re boring. Overlooked. Financially sound. And mispriced.

This month’s deep dive features exactly that: a small-cap financial that’s quietly doubled in the past year, yet still trades at just 6.4x forward earnings while generating nearly 28% ROE.

What’s more, the CEO and CFO aren’t just clocking in; they own 6% of the business. That kind of alignment is rare in public markets today. These aren’t managers, they’re owners. And they’re running the company like it.

Add a multi-state footprint, a high-margin rebound, and a valuation gap begging to close, and you’ve got all the ingredients for a +60% re-rating over the next 12 months.

Want the full breakdown, including the ticker, key risks, and exact valuation math?

Upgrade to paid for just $130/year. You’ll get one deeply researched, high-conviction idea like this every month. These ideas have the potential to easily pay for the subscription and then some.

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