CNA Financial Corporation is poised to gain on the back of new businesses, improved non-catastrophe current accident year underwriting results, higher net earned premiums, and effective capital deployment.
Optimistic Growth Projections
The Zacks Consensus Estimate for 2024 earnings per share is pegged at $5.16, indicating an increase of 9.5% from the year-ago reported figure.
Northbound Estimate Revision
The Zacks Consensus Estimate for CNA Financial’s 2023 and 2024 earnings has moved 0.5% and 7.5% north, respectively, in the past 30 days.
Earnings Surprise History
CNA Financial has a solid track record of beating earnings estimates in three of the last four quarters.
Zacks Rank & Price Performance
CNA Financial currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 2.5% compared with the industry’s growth of 26%.
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Return on Equity (ROE)
In the fourth quarter of 2023, CNA Financial’s trailing 12-month ROE expanded 300 basis points (bps) to 14.3%. The core ROE expanded 370 bps to 10.6% in 2023.
Style Score
CNA Financial has a favorable VGM Score of B, helping identify the most attractive value, best growth, and most promising momentum stocks.
Business Tailwinds
CNA Financial is well-poised to gain from a rise in new businesses, strong rate, lower net catastrophe losses, improved non-catastrophe current accident year underwriting results, and higher net earned premiums across its Specialty, Commercial, and International segments.
Net investment income and fixed income investments are expected to contribute to premium growth, benefitting from favorable reinvestment yields and strong operating cash flows. The company’s strong balance sheets and cash flows enable it to engage in shareholder-friendly moves like dividend hikes, reflecting continued excellent underwriting and fixed-income results.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Arch Capital Group Ltd., Axis Capital Holdings Limited, and Mercury General Corporation, each sporting a Zacks Rank #1 (Strong Buy) at present.
Arch Capital has a solid record of beating earnings estimates in each of the last trailing four quarters. Over the past year, it has jumped 27%.
Axis Capital also has a solid record of beating earnings estimates in each of the last trailing four quarters.
Mercury General beat estimates in three of the last four quarters and matched in one, the average being 3,417.48%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
