) is set to report its first-quarter 2014 results on April 28.
Last quarter, the company had posted a 31.4% positive earnings
surprise. Let's see how things are shaping up for this
Growth Factors This Past Quarter
Loews' aim to strengthen its hotel business and continued solid
underwriting margins from CNA Financial are expected to drive
better results at Loews.
CNA Specialty as well as Commercial should benefit from rate
is expected to aid performance at High Mount that suffered over
the past quarters due to lower drilling activity and lower
natural gas prices.
The ultra-deepwater and deepwater floater markets are gaining
momentum, in particular, the ultra-deepwater. However, contracted
backlog will restrict Diamond Offshore from capitalizing on
strong demand in ultra-deepwater and deepwater markets.
Our proven model does not conclusively show that Loews is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Positive Zacks ESP
: Loews has a positive Zacks ESP. That is because the Most
Accurate estimate stands at 76 cents while the Zacks Consensus
Estimate is lower at 75 cents. That leads to a difference of
Zacks Rank #4
: Loews's Zacks Rank #4 (Sell), when combined with a positive
ESP, makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
RenaissanceRe Holdings Ltd
), earnings ESP of +3.15% and a Zacks Rank #1 (Strong Buy).
) earnings ESP of +1.41% and a Zacks Rank #2 (Buy).
), earnings ESP of +0.65% and a Zacks Rank #3 (Hold).
ACE LIMITED (ACE): Free Stock Analysis Report
CIGNA CORP (CI): Free Stock Analysis Report
LOEWS CORP (L): Free Stock Analysis Report
RENAISSANCERE (RNR): Free Stock Analysis
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