PRA - Here's Why You Should Retain Cincinnati Financial Stock | Benzinga
Cincinnati Financial Corporation's (NASDAQ: CINF) higher level of insured exposure, rate increase, agent-focused business model, consistent cash flow and a solid capital position make it worth retaining in one's portfolio.
It has a solid history of delivering positive surprises in the last five quarters. Earnings of this Zacks Rank #3 (Hold) insurer grew 11.9% in the last five years, better than the industry average of 10.5%.
CINF has a VGM Score of B. The Zacks Consensus Estimate for 2025 earnings per share has moved 1 cent north in the past 30 days, reflecting analyst optimism.
Shares have gained 12.8% year to date, compared with the industry's increase of 13.9%.
Image Source: Zacks Investment Research
Return on Equity
CINF has a return on equity ("ROE") of 9.3%, better than the industry average of 7.8%. ROE measures how efficiently a company utilizes shareholders' funds to generate profit.
Optimistic Growth Projection
The Zacks Consensus Estimate for 2024 earnings stands at $6.32 per share, suggesting an increase of 4.8% on 10.7% higher revenues of $9.8 billion. The consensus estimate for 2025 earnings per share stands at $6.99, suggesting an increase of 10.7% on 8.5% higher revenues of $10.7 billion.
The long-term earnings growth is expected to be 7.3%. We expect the 2026 bottom ...