A strong stock as of late has been CNO Financial (CNO). Shares have been marching higher, with the stock up 4.1% over the past month. The stock hit a new 52-week high of $48.13 in the previous session. CNO has gained 12.8% since the start of the year compared to the 0.8% gain for the Zacks Finance sector and the -5.6% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2026, CNO reported EPS of $1.29 versus consensus estimate of $0.91.
For the current fiscal year, CNO is expected to post earnings of $4.46 per share on $3.99 in revenues. This represents a 9.31% change in EPS on a -11.73% change in revenues. For the next fiscal year, the company is expected to earn $4.89 per share on $4.11 in revenues. This represents a year-over-year change of 9.75% and 3.03%, respectively.
Valuation Metrics
CNO may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CNO has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.5X. On a trailing cash flow basis, the stock currently trades at 7X versus its peer group's average of 9.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CNO an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, CNO currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CNO fits the bill. Thus, it seems as though CNO shares could have a bit more room to run in the near term.
How Does CNO Stack Up to the Competition?
Shares of CNO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Ategrity Specialty Insurance Company Holdings (ASIC). ASIC has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Ategrity Specialty Insurance Company Holdings beat our consensus estimate by 27.50%, and for the current fiscal year, ASIC is expected to post earnings of $1.98 per share on revenue of $552.32 million.
Shares of Ategrity Specialty Insurance Company Holdings have gained 3.4% over the past month, and currently trade at a forward P/E of 10.27X and a P/CF of 13X.
The Insurance - Multi line industry is in the top 45% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CNO and ASIC, even beyond their own solid fundamental situation.
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CNO Financial Group, Inc. (CNO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).