Resolution Limited (RSL): Should You Buy It Today?

Double-digit earnings increases expected
On top of excellent dividend prospects, investors can look forward to sterling earnings growth over the medium term that should buttress these juicy shareholder returns. Analysts expect earnings to jump 20% in 2013, to 24 pence per share, before punching a 14% increase the following year to 27 pence per share.

Resolution Limited (LON:RSL) was recently trading on P/E ratios of 10.5 for 2013 and 9.2 for 2014, representing a vast markdown to the average forward earnings multiple of 12.2 for the broader life insurance sector. As well, the insurer carries price/earnings to growth (PEG) levels of 0.5 and 0.7 for this year and next, well below the bargain threshold of 1 and underlining the stock’s position as a great value pick.

The article Should You Buy Resolution Today? originally appeared on Fool.com and is written by Royston Wild.

Royston does not own shares in Resolution. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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