On Apr 5, 2013, Zacks Investment Research upgraded
Cincinnati Financial Corp.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Cincinnati Financial has delivered positive earnings surprises
in all 4 quarters of 2012 with an average beat of 64.01%.
Moreover, the Zacks Consensus Estimate for the first quarter for
2013 stands at 52 cents per share, up 7.64% year over year. Most
estimates were revised upward over the past 60 days.
This property and casualty insurance company is expected to
declare its first-quarter earnings after the closing bell on Apr
25. Cincinnati Financial's Commercial Lines Insurance segment has
been witnessing top-line growth for the past couple of years
driven by several growth initiatives as well as a gradual
increase in insurance rates. The momentum is expected to continue
Cincinnati Financial's Excess and Surplus line is also
performing well. Appointing new agencies is another strategic
initiative that the company is focused on for 2013. During 2013,
it plans to appoint around 65 agencies, which according to
management, can plough in $5 billion of direct written premium by
Additionally, Cincinnati Financial regularly returns capital
to shareholders in the form of cash dividend. The dividend yield
of 3.43% is higher than the industry average of 2.2%. Management
has been consistently increasing the yearly dividend for the past
Other Stocks to Consider
Other stocks in the property and casualty insurance sector
that are worth a look are
Arch Capital Group Ltd.
Aspen Insurance Holdings Ltd.
AXIS Capital Holdings Limited
). All these are Zacks Rank #1 (Strong Buy) companies.
ARCH CAP GP LTD (ACGL): Free Stock Analysis
ASPEN INS HLDGS (AHL): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
CINCINNATI FINL (CINF): Free Stock Analysis
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