We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CINF Stock Trades Above 50-Day SMA: What Should Investors Do?
Read MoreHide Full Article
Cincinnati Financial Corporation (CINF - Free Report) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of March 25, 2025, was $145.80, down 9.8% from its 52-week high of $161.75.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
With a market capitalization of $22.82 billion, the average volume of shares traded in the last three months was 0.8 million.
CINF Price Movement vs. 50-Day Moving Average
Image Source: Zacks Investment Research
Price Performance
Shares of CINF have gained 18.2% in the past year, outperforming the Finance sector and the S&P 500 composite’s return of 16.4% and 10.4%, respectively. It, however, underperformed the industry’s growth of 22.9%.
CINF Lags Industry, Outperform Sector and S&P 500 in 1 Year
Image Source: Zacks Investment Research
CINF’s Growth Projection Encourages
The Zacks Consensus Estimate for Cincinnati Financial’s 2025 revenues is pegged at $11.23 billion, implying a year-over-year improvement of 12.9%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 52.5% and 8%, respectively, from the corresponding 2025 estimates.
Earnings have grown 15.8% in the past five years. CINF beat earnings estimates in three of the past four quarters and missed in one, with an average surprise of 24.32%.
Attractive Valuation
Its shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.64X is lower than the industry average of 1.65X.
Shares of NMI Holdings Inc (NMIH - Free Report) are trading at a discount to the industry average, while The Travelers Companies, Inc. (TRV - Free Report) and Palomar Holdings, Inc. (PLMR - Free Report) are trading at a multiple higher than the industry average.
Factors Acting in Favor of CINF
Prudent pricing, an agent-centric model, a higher level of insured exposures and disciplined expansion of Cincinnati Re should benefit premiums, the primary driver of an insurer’s top line. CINF boasts above-average industry premium growth.
The Excess and Surplus line has been performing well since its inception in 2008. This segment should continue to benefit from new business-written premiums, higher renewal-written premiums and higher average renewal estimated pricing. Technology and data are also used to identify new exposures in emerging businesses.
Improving interest income from fixed-maturity securities and a decrease in equity portfolio dividends in an improved rate environment should drive net investment income.
Notably, its free cash flow conversion has remained more than 150% over the last few quarters, reflecting its solid earnings.
CINF’s Wealth Distribution
In terms of capital management, Cincinnati Financial has returned capital to its shareholders through share buybacks, regular cash dividends, as well as special dividends. The board of directors had increased the annual cash dividend rate for 65 consecutive years. Its dividend yield of 2.2% is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. The dividend increases reflected strong operating performance and signaled management and the board's positive outlook and confidence in outstanding capital, liquidity and financial flexibility.
Conclusion
Higher level of insured exposure, rate increases, agent-focused business models, consistent cash flow and prudent capital deployment make Cincinnati Financial a strong contender for being in one’s portfolio.
Image: Bigstock
CINF Stock Trades Above 50-Day SMA: What Should Investors Do?
Cincinnati Financial Corporation (CINF - Free Report) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of March 25, 2025, was $145.80, down 9.8% from its 52-week high of $161.75.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
With a market capitalization of $22.82 billion, the average volume of shares traded in the last three months was 0.8 million.
CINF Price Movement vs. 50-Day Moving Average
Image Source: Zacks Investment Research
Price Performance
Shares of CINF have gained 18.2% in the past year, outperforming the Finance sector and the S&P 500 composite’s return of 16.4% and 10.4%, respectively. It, however, underperformed the industry’s growth of 22.9%.
CINF Lags Industry, Outperform Sector and S&P 500 in 1 Year
Image Source: Zacks Investment Research
CINF’s Growth Projection Encourages
The Zacks Consensus Estimate for Cincinnati Financial’s 2025 revenues is pegged at $11.23 billion, implying a year-over-year improvement of 12.9%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 52.5% and 8%, respectively, from the corresponding 2025 estimates.
Earnings have grown 15.8% in the past five years. CINF beat earnings estimates in three of the past four quarters and missed in one, with an average surprise of 24.32%.
Attractive Valuation
Its shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.64X is lower than the industry average of 1.65X.
Shares of NMI Holdings Inc (NMIH - Free Report) are trading at a discount to the industry average, while The Travelers Companies, Inc. (TRV - Free Report) and Palomar Holdings, Inc. (PLMR - Free Report) are trading at a multiple higher than the industry average.
Factors Acting in Favor of CINF
Prudent pricing, an agent-centric model, a higher level of insured exposures and disciplined expansion of Cincinnati Re should benefit premiums, the primary driver of an insurer’s top line. CINF boasts above-average industry premium growth.
The Excess and Surplus line has been performing well since its inception in 2008. This segment should continue to benefit from new business-written premiums, higher renewal-written premiums and higher average renewal estimated pricing. Technology and data are also used to identify new exposures in emerging businesses.
Improving interest income from fixed-maturity securities and a decrease in equity portfolio dividends in an improved rate environment should drive net investment income.
Notably, its free cash flow conversion has remained more than 150% over the last few quarters, reflecting its solid earnings.
CINF’s Wealth Distribution
In terms of capital management, Cincinnati Financial has returned capital to its shareholders through share buybacks, regular cash dividends, as well as special dividends. The board of directors had increased the annual cash dividend rate for 65 consecutive years. Its dividend yield of 2.2% is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. The dividend increases reflected strong operating performance and signaled management and the board's positive outlook and confidence in outstanding capital, liquidity and financial flexibility.
Conclusion
Higher level of insured exposure, rate increases, agent-focused business models, consistent cash flow and prudent capital deployment make Cincinnati Financial a strong contender for being in one’s portfolio.
Favorable estimates and attractive valuation also add to the upside. It is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.