Conservative analysts have been upbeat about the insurance industry in 2021. Following a challenging pandemic year, the industry is ready to bounce back with increased adoption of highly efficient technology, and more exposure as households start to consider their wider insurance needs again. The industry has gained more than 7% on the stock market in the year to date, compared to just over 4% for the entire S&P 500 index.
Cincinnati Financial Corp. (NASDAQ: CINF) is engaged in the provisioning of property and life insurance. A strong dividend return, and a potential stock upside make it an interesting pick in 2021.
Last year, Cincinnati Financial Corp. endured a -4.90% decline in sales growth. However, the company’s loss ratio (the financial percentage of claims paid compared to premiums received) was strong at 69.13%. Earnings are expected to expand this year with estimated growth of 21%.
The earnings growth could drive the share price upwards, which is reflected in the high-end target price of $130.00 per share. This stock also provides a reliable dividend with a yield of 2.38% today, making it a strong income option within a low-rate environment.
Key Data:
- 1 Year Price Growth: 67%
- YTD Price Growth: 41%
- 3 Month Price Growth: 46%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.