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Cincinnati Financial (CINF) Soars 5.2%: Is Further Upside Left in the Stock?
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Cincinnati Financial (CINF - Free Report) shares ended the last trading session 5.2% higher at $117.79. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.1% loss over the past four weeks.
Cincinnati Financial continues to witness growth in the Commercial Lines Insurance segment, led by price increases and several growth initiatives which include expansion of Cincinnati Re and Cincinnati Global. Additional agency appointments, the expansion of local field presence and enhanced expertise poise the segment well for growth.
Pricing precision and broad-based rate increases are expected to help the combined ratio remain at a profitable level over the long term. Cincinnati Financial continued to use predictive analytics tools and segmentation while leveraging local relationships with its agents.
Cincinnati Financial’s Excess and Surplus (E&S) line is likely to gain from new business written premiums, higher renewal written premiums and higher average renewal estimated pricing. Its strategy of providing superior service is expected to help the segment grow and improve profitability.
This insurer is expected to post quarterly earnings of $1.48 per share in its upcoming report, which represents a year-over-year change of +66.3%. Revenues are expected to be $2.35 billion, up 10.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cincinnati Financial, the consensus EPS estimate for the quarter has been revised 6.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CINF going forward to see if this recent jump can turn into more strength down the road.
Cincinnati Financial is part of the Zacks Insurance - Property and Casualty industry. Progressive (PGR - Free Report) , another stock in the same industry, closed the last trading session 3.3% higher at $196.01. PGR has returned 5.3% in the past month.
For Progressive, the consensus EPS estimate for the upcoming report has changed +15.7% over the past month to $2.61. This represents a change of +301.5% from what the company reported a year ago. Progressive currently has a Zacks Rank of #1 (Strong Buy).
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Cincinnati Financial (CINF) Soars 5.2%: Is Further Upside Left in the Stock?
Cincinnati Financial (CINF - Free Report) shares ended the last trading session 5.2% higher at $117.79. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.1% loss over the past four weeks.
Cincinnati Financial continues to witness growth in the Commercial Lines Insurance segment, led by price increases and several growth initiatives which include expansion of Cincinnati Re and Cincinnati Global. Additional agency appointments, the expansion of local field presence and enhanced expertise poise the segment well for growth.
Pricing precision and broad-based rate increases are expected to help the combined ratio remain at a profitable level over the long term. Cincinnati Financial continued to use predictive analytics tools and segmentation while leveraging local relationships with its agents.
Cincinnati Financial’s Excess and Surplus (E&S) line is likely to gain from new business written premiums, higher renewal written premiums and higher average renewal estimated pricing. Its strategy of providing superior service is expected to help the segment grow and improve profitability.
This insurer is expected to post quarterly earnings of $1.48 per share in its upcoming report, which represents a year-over-year change of +66.3%. Revenues are expected to be $2.35 billion, up 10.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cincinnati Financial, the consensus EPS estimate for the quarter has been revised 6.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CINF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cincinnati Financial is part of the Zacks Insurance - Property and Casualty industry. Progressive (PGR - Free Report) , another stock in the same industry, closed the last trading session 3.3% higher at $196.01. PGR has returned 5.3% in the past month.
For Progressive, the consensus EPS estimate for the upcoming report has changed +15.7% over the past month to $2.61. This represents a change of +301.5% from what the company reported a year ago. Progressive currently has a Zacks Rank of #1 (Strong Buy).