Cincinnati Financial (CINF) shares ended the last trading session 3.6% higher at $184.08. 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 11.1% gain over the past four weeks.
Cincinnati Financial is poised to grow from an agent-centered model and policy-by-policy pricing that supports profitable premium growth across market cycles. The Q1 results showed improved underwriting, helped by lower catastrophe losses and favorable prior-year reserve development, while investment income grew on higher bond yields and strong operating cash flow. Diversification from Cincinnati Re, Cincinnati Global, and E&S adds earnings balance. Its capital remains flexible with a long dividend-growth record, ongoing buybacks and sizable parent liquidity.
This insurer is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of -13.7%. Revenues are expected to be $3.01 billion, up 8.4% 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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 a member of the Zacks Insurance - Property and Casualty industry. One other stock in the same industry, First American Financial (FAF), finished the last trading session 2.5% higher at $67.06. FAF has returned -1.7% over the past month.
First American Financial's consensus EPS estimate for the upcoming report has changed +1.7% over the past month to $1.82. Compared to the company's year-ago EPS, this represents a change of +19%. First American Financial currently boasts a Zacks Rank of #3 (Hold).
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Cincinnati Financial Corporation (CINF): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).