CNO Financial (CNO) Gains 26% in a Year: More Room to Run?
Shares of CNO Financial Group, Inc. CNO have gained 26.2% in the past year compared with the industry’s 8.4% growth. The Finance sector and the S&P 500 composite index rose 11.9% and 18.7%, respectively, in the same time frame. With a market capitalization of $2.7 billion, the average volume of shares traded in the last three months was 0.6 million.
Improved premiums, acquisitions and partnerships, technology upgradation and a sound financial position continue to drive CNO Financial.
Return on equity in the trailing 12 months is currently pegged at 14.5%, which is higher than the industry’s average of 10.5%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
Image Source: Zacks Investment Research
Can CNO Retain the Momentum?
The Zacks Consensus Estimate for CNO Financial’s 2023 earnings is pegged at $2.61 per share, indicating a 12% increase from the year-ago reported figure. The consensus mark for revenues stands at $3.7 billion, implying 4.3% growth from the prior-year number.
The Zacks Consensus Estimate for 2024 earnings is pegged at $2.96 per share, indicating a 13.4% increase from the 2023 estimate. The consensus mark for revenues stands at $3.8 billion, implying 1.1% growth from the 2023 estimate.
CNO Financial is poised to benefit from a well-diversified product portfolio comprising health insurance, annuity, individual life insurance and other insurance products. A diversified portfolio also equips the company to manage risks effectively and ensures a steady flow of premiums, which is one of the vital contributors to an insurer’s top line.
CNO launches new products as well as upgrade existing ones as per the market needs, which is expected to fetch higher premiums in the days ahead.
This Zacks Rank #3 (Hold) insurer resorts to acquisitions or partnerships for strengthening its product and services suite, which in turn, may expand its customer base. Its unit, Optavise, collaborated with the clinical-first care navigation company SentryHealth this August to bolster its portfolio of advocacy services and assure the wellbeing of its employers’ workforce.
CNO Financial pursues technology investments to enhance operational efficiencies, agent productivity and online sales of its insurance products. Such investments seem time opportune considering the growing digitization across every sphere of life. It has a digital health insurance marketplace in place, which is called myHealthPolicy.com.
Additionally, it boasts a strong financial position, substantiated by sound cash reserves. The financial strength equips the insurer to pursue business investments and enable the prudent deployment of capital through share repurchases and dividend payments.
CNO boasts an impressive VGM Score of B. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Stocks to Consider
Some better-ranked stocks in the insurance space are AXIS Capital Holdings Limited AXS, Chubb Limited CB and Aflac Incorporated AFL. AXIS Capital sports a Zacks Rank #1 (Strong Buy), and Chubb and Aflac carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AXIS Capital’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 9.75%. The Zacks Consensus Estimate for AXS’s 2023 earnings suggests an improvement of 44.8% while the consensus estimate for revenues suggests growth of 7.9% from the corresponding year-ago reported figures. The consensus mark for AXS’s 2023 earnings has moved 10.4% north in the past 60 days.
The bottom line of Chubb beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.36%. The Zacks Consensus Estimate for CB’s 2023 earnings suggests an improvement of 19.3% while the consensus estimate for revenues suggests growth of 8.8% from the corresponding year-ago reported figures. The consensus mark for CB’s 2023 earnings has moved 3.5% north in the past 60 days.
Aflac’s earnings outpaced estimates in each of the last four quarters, the average surprise being 7.76%. The Zacks Consensus Estimate for AFL’s 2023 earnings suggests an improvement of 12.2% from the year-ago reported figure. The consensus mark for AFL’s 2023 earnings has moved 3.3% north in the past 60 days.
Shares of AXIS Capital, Chubb and Aflac have gained 11.6%, 18% and 30.2%, respectively, in the past year.
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
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
Chubb Limited (CB) : Free Stock Analysis Report
Aflac Incorporated (AFL) : Free Stock Analysis Report
Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report
