Cincinnati Financial (CINF) closed at $102.82 in the latest trading session, marking a +1.64% move from the prior day. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Heading into today, shares of the insurer had lost 4.13% over the past month, lagging the Finance sector's gain of 2.65% and the S&P 500's gain of 3.78% in that time.
Wall Street will be looking for positivity from Cincinnati Financial as it approaches its next earnings report date. In that report, analysts expect Cincinnati Financial to post earnings of $0.91 per share. This would mark year-over-year growth of 40%. Meanwhile, our latest consensus estimate is calling for revenue of $2.05 billion, up 3.73% from the prior-year quarter.
CINF's full-year Zacks Consensus Estimates are calling for earnings of $4.64 per share and revenue of $8.38 billion. These results would represent year-over-year changes of +9.43% and +4.45%, respectively.
Any recent changes to analyst estimates for Cincinnati Financial should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. Cincinnati Financial currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cincinnati Financial is currently trading at a Forward P/E ratio of 21.8. For comparison, its industry has an average Forward P/E of 13.39, which means Cincinnati Financial is trading at a premium to the group.
Also, we should mention that CINF has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want 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