With a market cap of around $19 billion, New York-based Loews Corporation (L) operates as a diversified holding company. Its range of businesses includes insurance, energy, hospitality, and manufacturing. The company’s subsidiaries are active in commercial property and casualty insurance, offshore oil and gas drilling, natural gas transportation and storage, hotel management, and plastics manufacturing.
Stock Performance Compared to Market Trends
Over the past 52 weeks, shares of Loews have not kept pace with the broader market. Specifically, L has risen 25.8%, while the S&P 500 Index ($SPX) has rallied 31.8%. In 2024, L’s year-to-date performance shows a 25.1% increase, trailing slightly behind SPX’s YTD gain of 25.8%.
Lagging Behind Financial Sector Funds
Diving deeper into sector performance, Loews has also fallen short when compared to the Financial Select Sector SPDR Fund’s (XLF) impressive 45.4% return over the past year and a 36.3% gain year-to-date.
Q3 Results Show Strength Amid Challenges
Loews Corporation delivered a strong Q3 performance, with net income rising to $1.82 per share. This boost resulted from increased investment income and solid results from its insurance unit, CNA Financial. CNA’s revenue grew to $3.6 billion, with net income climbing to $259 million, thanks to higher net investment income, though it faced headwinds from increased catastrophe losses. Additionally, revenue from Boardwalk Pipelines rose to $483 million, benefitting from higher re-contracting rates, while Loews Hotels experienced a decline in net income due to an impairment charge during the quarter.
Analyst Outlook and Current Valuation
According to market analysts, the consensus rating for Loews stock is “Moderate Buy.”
Currently, Loews trading price remains significantly below the mean price target of $183, which also stands as the Street’s highest price target.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
