Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Sep 17, Zacks Investment Research upgraded CNA Financial Corporation (CNA - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?     

CNA Financial has witnessed rising earnings estimates on the back of solid second-quarter 2013 results. Moreover, this property and casualty insurer delivered positive earnings surprises in 3 of the last 4 quarters. The long-term expected earnings growth rate for this stock is 5%.    

CNA Financial reported second quarter results on Jul 29. Non-GAAP earnings per share came in at 75 cents, surpassing the Zacks Consensus Estimate by 17.2%, and year-ago earnings by 33.9%.

The improvement came on the back of higher net investment income, better current accident year underwriting results, and a settlement benefit of $30 million related to workers' compensation residual market litigation.

Net written premiums of CNA Financial improved 7% year over year, fueled by the acquisition of Hardy as well as increased rates across both CNA Specialty and CNA Commercial. Additionally, CNA Financial’s net investment income improved 30%, largely attributable to better limited partnership investment results.

Book value improved 3% over 2012 to $43.81 as on Jun 30, 2013.

The Zacks Consensus Estimate for fiscal 2013 increased 3.7% to $3.08 per share as 2 of 5 estimates were revised higher over the last 60 days. For 2014 as well, 2 of 5 estimates were revised higher over the same time frame, lifting the Zacks Consensus Estimate by 5.3% to $4.60 per share.

Other Stocks to Consider

Property and casualty insurers Alleghany Corporation  (Y - Snapshot Report), Everest Re Group Ltd. (RE - Analyst Report), and Global Indemnity plc (GBLI), each carrying a Zacks Rank #1 (Strong Buy) are also worth considering.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%