On January 12, Zacks Investment Research upgraded
Cincinnati Financial Corp.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Cincinnati has been witnessing rising earnings estimates on the
back of management's efforts in appointing agencies and expanding
product offerings to compensate the decline in businesses, strong
scores from credit rating agencies and better-than-expected
results at its Commercial segment. Moreover, this property &
casualty insurer delivered positive earnings surprises in all the
4 quarters with an average beat of 41.7%. The expected long-term
earnings growth rate for this stock is 5%.
The Zacks Consensus Estimate for 2013 is $1.76 per share, up 5.4%
as 4 of the 7 estimates were revised higher over the last 60
Based on the solid performance in the first three quarters, the
Zacks Consensus Estimate for 2012 is $1.77 per share, up nearly
168.6% year over year. However, pretax cat loss of $25-$35
million from Hurricane Sandy will weigh on the fourth quarter
results. The Zacks Consensus Estimate for the fourth
quarter is 49 cents per share, down 37% year over year.
Cincinnati reported its third-quarter results on October 25.
Non-GAAP earnings per share came in at 64 cents per share,
surpassing the Zacks Consensus Estimate by 56.1%. It was
significantly ahead of the year-ago earnings of 13 cents.
The upside was largely driven by strong property casualty
Other Stocks to Consider
Apart from Cincinnati, other stocks in the property and casualty
insurers segment that are currently performing well and are worth
HCC Insurance Holdings Inc
). Both the companies carry a Zacks Rank #1 (Strong Buy).
ALLSTATE CORP (ALL): Free Stock Analysis
CINCINNATI FINL (CINF): Free Stock Analysis
HCC INS HLDGS (HCC): Free Stock Analysis
To read this article on Zacks.com click here.