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Loews Corp (L) Likely to Top Q3 Earnings: Stock to Gain?
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We expect multiline insurer Loews Corp. (L - Free Report) to beat expectations when it reports third-quarter results on Oct 31, before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that Loews has the right combination of two key ingredients to beat estimates.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +4.35%. This is because the Most Accurate estimate of 72 is pegged higher than the Zacks Consensus Estimate of 69 cents. A positive ESP is a meaningful indicator of a likely positive earnings surprise for the company. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Loews carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating on earnings.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Factors Influencing This Past Quarter
CNA Financial (CNA - Free Report) is expected to perform well owing to the underlying strength in its business. While the commercial lines business is well poised for growth, the company remains focused on ramping up its specialty business.
Although CNA Financial likely has faces challenges due to slowing premium rates, investment in information technology is likely to boost its underwriting capabilities.
Loews Hotels’ results are expected to improve on its operational strength.
Continued share buyback should also boost the bottom line.
However, Diamond Offshore’s (DO - Free Report) results likely have been affected by lower contract drilling revenues, reduced exploration and production budgets and an influx of new rig deliveries. Nonetheless, new drill ships that are on long-term charters are expected to drive revenues.
The persistently soft interest rate environment is likely to weigh on investment results.
With respect to the surprise trend, Loews missed expectations in three of the last four quarters, with an average negative surprise of 23.33%.
The company’s share price has been fluctuating over the last few days. We wait to see how the stock reacts to the quarter’s results.
Stock to Consider
Here is a multiline insurer that has the right combination of elements to post an earnings beat this quarter:
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Loews Corp (L) Likely to Top Q3 Earnings: Stock to Gain?
We expect multiline insurer Loews Corp. (L - Free Report) to beat expectations when it reports third-quarter results on Oct 31, before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that Loews has the right combination of two key ingredients to beat estimates.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +4.35%. This is because the Most Accurate estimate of 72 is pegged higher than the Zacks Consensus Estimate of 69 cents. A positive ESP is a meaningful indicator of a likely positive earnings surprise for the company. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
LOEWS CORP Price and EPS Surprise
LOEWS CORP Price and EPS Surprise | LOEWS CORP Quote
Zacks Rank: Loews carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating on earnings.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Factors Influencing This Past Quarter
CNA Financial (CNA - Free Report) is expected to perform well owing to the underlying strength in its business. While the commercial lines business is well poised for growth, the company remains focused on ramping up its specialty business.
Although CNA Financial likely has faces challenges due to slowing premium rates, investment in information technology is likely to boost its underwriting capabilities.
Loews Hotels’ results are expected to improve on its operational strength.
Continued share buyback should also boost the bottom line.
However, Diamond Offshore’s (DO - Free Report) results likely have been affected by lower contract drilling revenues, reduced exploration and production budgets and an influx of new rig deliveries. Nonetheless, new drill ships that are on long-term charters are expected to drive revenues.
The persistently soft interest rate environment is likely to weigh on investment results.
With respect to the surprise trend, Loews missed expectations in three of the last four quarters, with an average negative surprise of 23.33%.
The company’s share price has been fluctuating over the last few days. We wait to see how the stock reacts to the quarter’s results.
Stock to Consider
Here is a multiline insurer that has the right combination of elements to post an earnings beat this quarter:
Cigna Corp. (CI - Free Report) , which is expected to release third-quarter earnings results on Nov 3, has an Earnings ESP of +2.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now