Back to top

Analyst Blog

On January 12, Zacks Investment Research upgraded Cincinnati Financial Corp. (CINF - Analyst Report) 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 days.

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 underwriting.

Other Stocks to Consider

Apart from Cincinnati, other stocks in the property and casualty insurers segment that are currently performing well and are worth considering include Allstate Corp. (ALL - Analyst Report) and HCC Insurance Holdings Inc (HCC - Snapshot Report). Both the companies carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

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 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
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%