CNA Stock Trading at a Discount to the Industry: Should You Buy It?

Zacks2024-12-25

CNA Financial Corporation CNA shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.21X is lower than the industry average of 1.53X.The ...

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Its price-to-book value of 1.21X is lower than the industry average of 1.53X.The ...</p>\n\n<a href=\"https://finance.yahoo.com/news/cna-stock-trading-discount-industry-161200920.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE0004445015.USD","symbol_name":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/cna-stock-trading-discount-industry-161200920.html","article_id":"2494034667","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EEUv5JQFTAI4U5iqIocwgw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/9d8e6ae4a2f2f78756262fb38b308001"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2494034667","pubTimestamp":1735056720,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"CNA Financial Corporation CNA shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.21X is lower than the industry average of 1.53X.The company has a Value Score of A, which suggests that the stock is cheap and indicates a favorable valuation at this moment. This style score helps find the most attractive value stocks.Being one of the largest U.S. commercial lines insurers, CNA has a market capitalization of $13.1 billion. The average volume of shares traded in the last three months was 0.3 million.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0289960550.SGD":"AB FCP I - GLOBAL EQUITY BLEND PORTFOLIO 'A' (SGD) ACC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","BK4107":"财产与意外伤害保险","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0985320562.USD":"NORDEA 1 GLOBAL STARS EQUITY \"BP\" (USD) ACC","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU1035773651.USD":"AB SICAV I - GLOBAL VALUE PORTFOLIO \"AD\" (USD) INC","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0731783394.SGD":"Fidelity Global Dividend A-MINCOME(G)-SGD","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4585":"ETF&股票定投概念","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU1069347547.HKD":"AB SICAV I - GLOBAL VALUE PORTFOLIO \"AD\" (HKD) INC","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","LU1599440770.SGD":"FIDELITY GLOBAL DIVIDEND \"A\" (SGDHDG) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","SG9999003800.SGD":"Nikko AM Global Dividend Equity Acc SGD-H","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","PGR":"美国前进保险公司","LU2108987350.USD":"UBS (LUX) EQUITY SICAV GLOBAL OPPORTUNITY SUSTAINABLE (USD) \"P\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1235295455.SGD":"Fidelity Global Multi Asset Growth & Income A-ACC-SGD","LU0731783048.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) INC MONTHLY (G)","LU1509826696.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) INC B","LU1983260115.SGD":"Janus Henderson Horizon Global Sustainable Equity A2 SGD-H","BK4588":"碎股","CB":"安达保险","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","CNA":"CAN金融","LU0772969993.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) ACC","ALL":"好事达","LU0742537680.HKD":"FIDELITY GLOBAL DIVIDEND \"A \" (HKD) INC","LU1481011671.HKD":"FIDELITY GLOBAL DIVIDEND \"A\" (HKDHDG) INC","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","SG9999011175.SGD":"Nikko AM Global Dividend Equity Dis SGD-H","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","LU1481011911.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USDHDG) INC","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU2355687059.USD":"NORDEA 1 GLOBAL IMPACT  \"BP\" (USD) ACC"},"translate_title":"CNA股票交易对行业有折扣：你应该买吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALL":1,"CB":1,"CNA":1,"PGR":1},"content_text":"CNA Financial Corporation CNA shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.21X is lower than the industry average of 1.53X.The company has a Value Score of A, which suggests that the stock is cheap and indicates a favorable valuation at this moment. This style score helps find the most attractive value stocks.Being one of the largest U.S. commercial lines insurers, CNA has a market capitalization of $13.1 billion. The average volume of shares traded in the last three months was 0.3 million. \nImage Source: Zacks Investment Research\nShares of other insurers like The Allstate Corporation ALL, Chubb Limited CB and The Progressive Corporation PGR are also trading at a multiple higher than the industry average.CNA shares have underperformed the industry, the Finance sector as well as the Zacks S&P 500 composite index in the past six months. CNA shares are trading below the 50-day moving average, indicating a bearish trend.\nCNA vs Industry, Sector & S&P 500 in 6-Months\nImage Source: Zacks Investment Research\nHowever, based on short-term price targets offered by two analysts, the Zacks average price target is $50 per share. The average suggests a potential 3.7% upside from Monday’s closing price.\nReturn on Capital\nCNA’s return on equity for the trailing 12 months is 13.3%, better than the industry average of 7.6%. This reflects efficiency in utilizing shareholders’ funds.The return on invested capital in the trailing 12 months was 2.2%, which compared unfavorably with the industry average of 5.8%. This reflects the insurer’s inefficiency in utilizing funds to generate income.\nGrowth Projection\nThe Zacks Consensus Estimate for CNA Financial’s 2024 earnings is pegged at $4.68 per share, indicating a decrease of 0.6% on 7% higher revenues of $12.4 billion. The Zacks Consensus Estimate for CNA’s 2025 earnings is pegged at $4.85 per share, indicating an increase of 3% on 4.9% higher revenues of $13.2 billion.   The expected long-term earnings growth rate is currently pegged at 1.7%.\nGrowth Drivers\nCNA Financial’s premiums should continue to grow on solid retention, favorable renewal premium change and new business growth across Specialty, Commercial and International segments.With the recent cut in interest rate, the Fed has made three rate cuts this year since September. It has also indicated at least two more cuts in 2025. An improving rate environment is favorable for an insurer. Amid this lower rate environment, the company’s fixed-income investment strategy with the highest allocations to diversified investment grade corporates as well as highly rated municipal securities should support investment results.CNA Financial has a solid balance sheet with capital remaining above the target levels required for all ratings. It exited the third quarter of 2024 with $11.3 billion in statutory surplus. CNA Financial continues to maintain a conservative capital structure. It maintains liquidity in the form of cash and short-term investments, which help to sustain business variability.\nParting Thoughts on CNA Stock\nBanking on prudent underwriting, this insurer has been improving underlying combined ratios in each of its P&C segments. CNA Financial has also been meaningfully reducing its LTC exposures and risk profiles through active management.The insurer’s dividend history is impressive. As part of wealth distribution, the insurer has been hiking dividends, apart from paying special dividends. Its dividend yield of 3.6% is better than the industry average of 0.3%, making it an attractive pick for yield-seeking investors.  A higher target price and a VGM Score of B instill confidence in the stock.\nHowever, CNA’s unfavorable leverage as well as times interest earned keeps us cautious on this Zacks Rank #3 (Hold) stock. Therefore, new investors can wait for some more time before adding the stock to their portfolios. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nChubb Limited (CB) : Free Stock Analysis Report\nThe Allstate Corporation (ALL) : Free Stock Analysis Report\nThe Progressive Corporation (PGR) : Free Stock Analysis Report\nCNA Financial Corporation (CNA) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2494034667"}