Providing workers' comp insurance for small companies and extended-warranty insurance for consumer products, steadily growing AmTrust has sidestepped the financial sector meltdown. But its stock has not been so lucky. That is good news for investors, who can now purchase shares for just 1.3 times the company's $6.71 in book value. A small company with a $600 million market cap, AmTrust says it is seeing strength and stability in all business segments and expects book value to grow as its bond portfolio recovers. Management increased the dividend in May (the stock now yields 2.4%) and has been buying back shares that trade at just six times the past four quarters' earnings and four times estimated 2009 profits. Enjoying customer-renewal rates above 80% while adding new accounts, AmTrust will be able to ride out the recession on solid ground.
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