We recently published a list of 15 Highest-Priced Stocks Right Now. In this article, we are going to take a look at where White Mountains Insurance Group, Ltd. (NYSE:WTM) stands against other highest-priced stocks right now.
2024 was a blockbuster year for the US markets, with the broad market index up 23.31% during the year, after rising 24.2% in the year prior. The two-year gain of 53% is the best performance for the index since the 66% rally between 1997 and 1998.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 12 Best S&P 500 Stocks to Invest in According to Analysts.
The market benefited from declining interest rates, waning inflation, and a resilient economy that avoided recession. While analysts have projected continued growth in 2025, they are also cautious about the rally having gone too far with a correction in the offing this year. Fears of fierce trade wars and geopolitical conflicts could also hurt the stock market.
Over the past few weeks, President Trump has announced and then delayed tariffs on Canada and Mexico, imposed additional 10% tariffs on Chinese goods, and warned the European Union of similar treatment, citing the bloc’s treatment of the U.S. The new administration’s protectionist policies have sparked concerns in the markets about which countries will be next on the American president’s list, leaving several large multinationals unsure of how to plan.
According to analysts at Goldman Sachs Research, index earnings could drop by 2-3% if the US goes ahead with its proposed tariffs. Financial markets have been turbulent amid ongoing tariff negotiations between Washington and its major trade partners. Here is what chief equity strategist, David Kostin, wrote in a recent report.
“If company managements decide to absorb the higher input costs, then profit margins would be squeezed. If companies pass along the higher costs to end customers, then sales volumes may suffer. Firms may try to push back on their suppliers and ask them to absorb part of the cost of the tariff through lower prices.”
Analysts at the investment banking firm have also warned that protectionist policies driving up the value of the U.S. Dollar could further pressure the earnings of several companies, especially those that derive a significant portion of their revenues outside the United States.
Time will tell whether the Trump administration implements the tariffs or reaches a compromise with its trade partners, and how the markets react if the export taxes are imposed. However, if past trends are anything to go by, the broad market index dropped by a total of 5% on days when the U.S., under Trump’s first stint as president, announced tariffs in 2018 and 2019. The index fell by a cumulative 7% when other countries imposed retaliatory tariffs.
Methodology
We went through screeners to identify the highest-priced stocks as of the close of the day on Friday, February 14, 2025 and ranked them in ascending order of their share price.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A view of the skyline with a corporate high-rise building, symbolizing the power of the company’s financial services.
White Mountains Insurance Group, Ltd. (NYSE:WTM)
Share Price on February 14: $1,826.18
White Mountains Insurance Group, Ltd. (NYSE:WTM) is a Bermuda-domiciled financial services holding company that owns and manages a broad range of businesses, including insurers, brokerages, investment advisors, financial guarantors, and service companies. It is among the highest-priced stocks right now, with its share price rising by 7.5% over the last six months.
On February 7, the company reported mixed results for the fourth quarter of fiscal 2024, with adjusted book value per share down 3% during the quarter, driven by mark-to-market declines in White Mountains Insurance Group, Ltd. (NYSE:WTM)’s investment portfolio. However, for the full year, the value increased by 8% amid strength in the company’s operating businesses and positive returns in its investment portfolio.
It was an impressive quarter for the Ark/WM Outrigger segment, which produced a combined ratio of 77% and reported a 14% year-over-year increase in gross written premiums. HG Global also saw robust primary market volume, while it was another strong quarter for Bamboo, with significant improvements in managed premiums and adjusted EBITDA from last year. Despite a tough quarter for Kudu due to high interest rates and currency factors, the segment delivered solid results for the year, with its portfolio value crossing the $1 billion mark.
White Mountains Insurance Group, Ltd. (NYSE:WTM)’s undeployed capital stood at $700 million, which can be leveraged for strategic opportunities ahead. The company is optimistic for fiscal 2025 and is eyeing profitable growth with the rate environment moderating.
According to Insider Monkey’s database for Q3 2024, 18 hedge funds held a stake in White Mountains Insurance Group, Ltd. (NYSE:WTM), down slightly from 19 at the end of the second quarter. The London Company Small Cap Strategy stated the following regarding WTM in its Q3 2024 investor letter:
White Mountains Insurance Group, Ltd. (NYSE:WTM) – Shares of WTM underperformed the market during 3Q. The company generates much of its income from P&C insurance, and the stock tends to track growth in book value over time. Separately, WTM has a good track record of creating value via capital allocation (buying and selling businesses) decisions, so transactions like the sale of NSM Insurance Group and also movements in its underlying investments can meaningfully impact shares. We remain confident in management’s ability to deliver outsized growth in book value per share over time through prudent capital allocation.
Overall, WTM ranks 9th on our list of highest-priced stocks right now. While we acknowledge the potential of conglomerate holding companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WTM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
