CNA Financial

CNA · NYSE

$48.40+$0.57 (+1.19%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $47.83

CNA analyst rating

This isn't available right now. Refresh to try again.

The case for and against

Updated Jan 21, 2025

Bull case

CNA Financial Corporation demonstrates a compelling outlook, primarily driven by a significant 15.9% sequential growth in case reserves, indicating robust risk management and proactive reserve establishment. Additionally, despite a 2% decline in international rates, the company saw an 18% increase in new business premiums, showcasing its ability to capitalize on attractive market opportunities. Furthermore, CNA's shares have consistently outperformed both the S&P 500 and the KBW Insurance Index over multiple timeframes, underscoring its favorable positioning within the profitable property and casualty insurance landscape.

Bear case

CNA Financial Corporation's stock faces a negative outlook primarily due to a recent decrease in earnings per share (EPS) estimates, with projected EPS for 2024 adjusted downward from $4.85 to $4.65, reflecting a miss in third-quarter performance. The current trading valuation of CNAF at 9.0 times its estimated EPS for 2025 is substantially lower than the average price-to-earnings (P/E) ratios of the S&P 500, indicating relative undervaluation alongside a concerning premium over historical price-to-book value (P/BV) multiples. Key risk factors, including potential loss cost inflation, heightened competition in commercial insurance pricing, and adverse developments in long-term care reserves, further contribute to a cautious financial outlook.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.