CNA Financial Corporation (CNA): Earnings Growth Remains Elusive
CNA Financial Corporation’s (NYSE:CNA) earnings per share contraction is expected to be a double-digit -10.33% over the next three years. Presently, with an EPS of $4.123, we can expect an upcoming EPS of $3.697. I am going to look at the latest data on CNA to assess whether this adverse expected growth is reasonable. View our latest analysis for CNA Financial
How is CNA Financial going to perform in the future?
The bad news for investors of CNA is that a drop in earnings is on the cards. Analysts covering the company are expecting the EPS to drop down to $3.697, a significant decline from previous levels of around $4.123. In the same period and profits (net income) are predicted to dip from $1,116M to $1,001M in the next couple of years. Furthermore, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the contraction
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is relatively reasonable or whether the negative outlook is too harsh. CNA’s earnings growth is expected to go downhill as analysts expect the single-digit earnings growth in the previous couple of years of 3.27% to deteriorate into double-digit negative growth over time. As a well-established company, CNA could be exhibiting signs of potential market share loss or obsolete products to larger negative growth over time.
Next Steps:
For CNA, there are three relevant aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is CNA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CNA is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CNA? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
