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Here's Why Investors Should Hold Lincoln National Stock for Now

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Key Takeaways

  • LNC has gained 28.1% in six months, outperforming the industry as growth spans all four insurance segments.
  • LNC benefits from higher premiums, investment and fee income, driven by annuities and retirement flows.
  • LNC's rising cash balance, lower debt and 4% dividend yield support financial stability and growth plans.

Lincoln National Corporation (LNC - Free Report) is well-poised for growth, thanks to its impressive performance in all segments. The company is also rolling out new products and improving existing ones, all while keeping a close eye on expenses and maintaining a strong financial base. Over the past six months, shares of LNC have grown 28.1%, outperforming the industry’s 7.1% rise.

Lincoln National — with a market capitalization of $8.5 billion — is a diversified life insurance and investment management company that provides a wide range of wealth accumulation, wealth protection, group protection and retirement products and solutions. Its trailing 12-month P/B ratio of 0.89X is lower than the industry average of 2X.

Courtesy of solid prospects, this Zacks Rank #3 (Hold) stock is worth holding on to at the moment.

Where Do Estimates for LNC Stand?

The Zacks Consensus Estimate for LNC’s 2025 earnings is pegged at $7.89 per share, indicating an 11.6% year-over-year rise. In the past 30 days, it has witnessed two upward estimate revisions against one in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $19 billion for 2025. The company beat earnings estimates in each of the past four quarters, with an average surprise of 12%. LNC carries a Value Score of C.

LNC’s Growth Drivers

The company operates multiple insurance businesses through four business segments: Annuities, Life Insurance, Group Protection and Retirement Plan Services. LNC's revenues are supported by a balanced business mix, higher insurance premiums, investment income and fee income.

The Annuities segment is benefiting from strong demand for spread-based products, favorable equity markets and ongoing product innovations, while Life Insurance is gaining momentum through a shift toward executive benefits and other life products, aided by improved operating efficiency. Group Protection continues to deliver steady premium growth, driven by pricing discipline and expansion in supplemental health products. Meanwhile, Retirement Plan Services is benefiting from increasing account balances, positive net flows and a robust pipeline.

The company continues to focus on enhancing its business mix toward higher-margin, capital-efficient growth. LNC is investing in the essential areas that boost its competitive advantage and transforming into a more agile, scalable and forward-thinking organization. Further, it is investing in digital tools, technology modernization and improving service capabilities to boost distribution productivity, enhance customer experience and improve retention. Its enhanced and diversified in-force book, improving average life insurance in-force and margin expansion initiatives, positions the bottom line well for growth.

Lincoln National maintains a solid financial foundation, bolstered by a rising cash balance and declining debt levels. As of Sept. 30, 2025, cash and invested cash were $10.7 billion, which rose 83.9% from the 2024-end level and its total debt stands at $5.8 billion. This strong financial position enables the company to pursue growth opportunities and strategically distribute capital. Its dividend yield of 4% remains higher than the industry’s average of 3.1%.

Key Concern

Lincoln National has a notable disparity in leverage compared to the industry, evident in its elevated total debt-to-capital of 35.6%, a substantial contrast to the industry average of 14.6%.

Key Picks

Some better-ranked stocks in the broader finance space are United Fire Group, Inc. (UFCS - Free Report) , Heritage Insurance Holdings Inc. (HRTG - Free Report) and Robinhood Markets, Inc. (HOOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for United Fire Group’s current-year earnings of $3.93 per share has witnessed one upward revision in the past 60 days against none in the opposite direction. United Fire Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 69.4%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 10% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $5.14 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 100.1%. The consensus estimate for current-year revenues is pegged at $844.6 million, calling for 3.4% year-over-year growth.

The Zacks Consensus Estimate for Robinhood Markets’ current-year earnings is pegged at $1.99 per share and has witnessed six upward revisions in the past 60 days against no movement in the opposite direction. Robinhood Markets beat earnings estimates in each of the trailing four quarters, with the average surprise being 25.8%. The consensus estimate for current-year revenues is pegged at $4.5 billion, calling for 51.9% year-over-year growth.

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