Core Insights - Three stocks are highlighted with a buy rank and strong value characteristics as of October 28th: Bread Financial, CNA Financial, and AllianceBernstein [1][2][3] Company Summaries Bread Financial (BFH) - Offers personalized payment, lending, and saving solutions - Holds a Zacks Rank 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings increased by 7.3% over the last 60 days - Price-to-earnings ratio (P/E) is 7.31, significantly lower than the industry average of 19 - Possesses a Value Score of A [1][2] CNA Financial (CNA) - Operates as a property and casualty insurer - Holds a Zacks Rank 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings increased by 2.2% over the last 60 days - Price-to-earnings ratio (P/E) is 9.90, compared to the industry average of 12.70 - Possesses a Value Score of A [2] AllianceBernstein (AB) - Provides diversified investment management services primarily to pension funds, endowments, and individual investors - Holds a Zacks Rank 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings increased by 0.9% over the last 60 days - Price-to-earnings ratio (P/E) is 11.87, lower than the industry average of 13.30 - Possesses a Value Score of A [3]

Group 1: Bread Financial (BFH) - The company is a tech-forward financial services provider offering personalized payment, lending, and saving solutions [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.3% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 1.3%, compared to the industry average of 0.0% [1] Group 2: CNA Financial (CNA) - CNA Financial offers commercial property and casualty insurance products primarily in the United States [2] - The Zacks Consensus Estimate for its current year earnings has increased by 2.2% over the last 60 days [2] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 4.1%, compared to the industry average of 0.7% [2] Group 3: Valley National Bancorp (VLY) - Valley National Bancorp provides a range of financial services including commercial, retail, insurance, and wealth management products [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.1% over the last 60 days [3] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 4%, compared to the industry average of 2.7% [3]

Core Insights - The Zacks Property and Casualty Insurance (P&C) industry is expected to benefit from prudent underwriting, exposure growth, and accelerated digitalization, with key players like The Travelers Companies, Allstate, Cincinnati Financial, CNA Financial, and Axis Capital poised for growth despite rising catastrophic events [1][2]. Industry Overview - The Zacks Property and Casualty Insurance industry includes companies providing commercial and personal property insurance, casualty insurance products, and services, with premiums being the primary revenue source [3]. - The industry is experiencing soft pricing after a period of improved pricing, influenced by factors such as interest rate cuts and inflation [2][3]. Trends Impacting the Industry - Catastrophes are a major concern, leading to rate increases to ensure claims payouts, with global commercial insurance rates falling 4% in the third quarter [4]. - The personal auto insurance segment is expected to perform strongly due to improved investment returns and reduced claims, with gross premiums projected to grow significantly by 2030 [4][5]. - Increased adoption of technology, including AI and insurtech, is transforming operations and enhancing efficiency within the industry [7][8]. Financial Performance and Valuation - The Property and Casualty Insurance industry has underperformed compared to its sector and the S&P 500, with a year-to-date increase of 6.8% compared to 12.5% and 14.9% for the sector and S&P 500, respectively [11]. - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 1.53X, significantly lower than the S&P 500's 8.79X and the sector's 4.23X [13]. Mergers and Acquisitions - Consolidation within the property and casualty industry is expected to continue as companies seek to diversify operations and gain market share, supported by strong capital levels [6]. Company-Specific Insights - **Travelers Companies**: Positioned for growth with high retention and improved pricing, expected earnings growth of 12.3% and 7.6% for 2025 and 2026 respectively [19][20]. - **Allstate**: Anticipates premium improvements from rate increases and strategic acquisitions, with earnings growth of 0.1% and 22% for 2025 and 2026 respectively [23][24]. - **Cincinnati Financial**: Focused on growth through better pricing and disciplined expansion, with a projected earnings growth of 31.1% for 2026 [27][28]. - **Axis Capital**: Aims for growth in specialty underwriting, with expected earnings growth of 8.7% and 1.9% for 2025 and 2026 respectively [31][32]. - **CNA Financial**: Maintains a favorable combined ratio and is well-positioned for growth, with projected earnings growth of 4.3% for 2026 [35][36].

Group 1 - CNA Financial Corporation will report its third quarter 2025 results before the market opens on November 3, 2025 [1] - The earnings release, presentation, and financial supplement will be available on CNA's website [1] - A transcript of earnings remarks will include commentary from the President and CEO, Douglas M. Worman, and CFO, Scott R. Lindquist [1] Group 2 - CNA invites shareholders and analysts to submit questions for management ahead of the earnings release [2] - Management may address some or all submitted questions in the posted earnings remarks [2] Group 3 - CNA is one of the largest U.S. commercial property and casualty insurance companies with over 125 years of experience [3] - The company provides a broad range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada, and Europe [3]

Core Insights - CNA Financial Corporation (CNA) shares are trading at a discount compared to the Zacks Property and Casualty Insurance industry, with a forward price-to-book value of 1.17X, lower than the industry average of 1.57X and the Finance sector's 4.32X [1] - The company has a market capitalization of $12.47 billion and an average trading volume of 0.4 million shares over the last three months [2] - CNA's shares closed at $46.07, representing a 10.4% discount from its 52-week high of $52.36, indicating potential for growth [3] Growth Projections - The Zacks Consensus Estimate for CNA Financial's 2025 revenues is $13.54 billion, reflecting a year-over-year improvement of 5.4% [4] - For 2026, the consensus estimates indicate an increase of 5.9% in earnings per share and 2.8% in revenues compared to 2025 [4] - Analyst sentiment is optimistic, with one of two analysts raising estimates for 2025 and 2026, resulting in a 2.7% and 0.4% increase in earnings estimates, respectively, over the past 60 days [5] Valuation and Performance - CNA Financial's trailing 12-month return on equity (ROE) is 11.8%, outperforming the industry average of 7.6% [12] - The average price target for CNA shares is $49, suggesting a potential upside of 4.84% from the last closing price [11] - Despite a 5.1% decline in shares over the past year, the industry has grown by 8.7% [10] Factors Supporting Growth - CNA's premium growth is driven by strong retention, favorable renewal premium changes, and new business gains across various segments [9] - The company maintains a solid balance sheet with statutory capital and surplus of $11.2 billion, ensuring a conservative capital structure and liquidity [14] - The insurer has a history of rewarding shareholders through regular dividend hikes, with a 10-year CAGR of 6.3% and a current dividend yield of 3.9%, significantly higher than the industry average of 0.2% [15] Conclusion - CNA Financial is positioned for long-term value creation through solid retention, favorable premium changes, and new business growth, alongside a strong dividend history [16] - The company has a favorable VGM Score of B, indicating attractive value, growth, and momentum compared to peers [17] - Given the positive growth projections and analyst sentiment, it may be an opportune time for potential investors to consider CNA Financial [19]

Core Viewpoint - The comparison between CNA Financial and Cincinnati Financial indicates that CNA presents a better value opportunity for investors at this time due to its superior valuation metrics [1][6]. Valuation Metrics - CNA Financial has a forward P/E ratio of 10.13, significantly lower than Cincinnati Financial's forward P/E of 26.30 [5]. - The PEG ratio for CNA is 4.07, while CINF has a PEG ratio of 7.56, suggesting that CNA is more favorably valued in terms of expected earnings growth [5]. - CNA's P/B ratio stands at 1.16, compared to CINF's P/B of 1.69, further indicating that CNA is undervalued relative to its book value [6]. Earnings Outlook - Both CNA and CINF hold a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions and an improving earnings outlook for both companies [3][6]. - Despite both companies having solid earnings prospects, the valuation metrics suggest that CNA is the more attractive option for value investors [6].

Core Insights - CNA Financial's shares have declined by 1.4% year to date, underperforming its industry and the broader market, which saw growth rates of 8.8%, 13.8%, and 12.8% respectively [1] - The company has a market capitalization of $12.9 billion and an average trading volume of 0.5 million shares over the last three months [1] Valuation and Market Position - CNA Financial shares are trading at a forward price-to-book value of 1.22X, which is lower than the industry average of 1.54X, indicating a discount [3] - The company has a Value Score of A, suggesting it is an attractive investment compared to peers [3] Financial Projections - The Zacks Consensus Estimate for 2025 revenues is $13.5 billion, reflecting a year-over-year growth of 6.3% [5] - Current-year earnings are estimated at $4.49 per share, down 7% from the previous year, while 2026 earnings per share and revenues are projected to increase by 6.2% and 2.8% respectively [5] Analyst Sentiment - Analyst estimates for 2025 and 2026 earnings have increased by 2.3% and 0.2% respectively in the past 30 days [6] Business Performance - CNA Financial has increased its gross premiums through retention, competitive pricing, and new business, leading to improved underwriting and healthier margins [8][12] - The company has raised its dividend five times in five years, maintaining a payout ratio of 40% [8][16] Investment Strategy - CNA's investment strategy focuses on a disciplined fixed-income approach, with expected earnings from fixed-income and other sources projected at $565 million for Q3 and around $2.25 billion for 2025, a 3% increase from 2024 [14] - The company emphasizes shareholder value creation through consistent capital returns and a dividend yield that surpasses the industry average [16] Conclusion - With disciplined underwriting, strong policy retention, and steady premium growth, CNA Financial is well-positioned for organic growth and financial resilience, supported by a focused investment approach [17] - The current discount valuation and a Zacks Rank 2 (Buy) suggest it may be a favorable addition to investment portfolios [17]

Core Viewpoint - CNA Financial reported strong second-quarter earnings, beating estimates and showing year-over-year growth in core earnings and revenues, indicating positive momentum for the company [2][3][4]. Financial Performance - Core earnings for Q2 2025 were $1.23 per share, exceeding the Zacks Consensus Estimate by 30.9% and reflecting a 3.4% increase year-over-year [2]. - Total operating revenues reached $3.4 billion, a 7.7% increase from the previous year, driven by higher premiums and net investment income [3]. - Net investment income rose 7.1% year-over-year to $662 million, supported by a larger invested asset base and favorable returns [4]. Claims and Expenses - Total claims, benefits, and expenses increased 7.1% year-over-year to $3.3 billion, primarily due to higher insurance claims [5]. - Underwriting income climbed 20.9% year-over-year to $150 million, with the combined ratio improving to 94.8 [6]. Segment Results - Specialty's net written premiums increased 4.1% year-over-year to $892 million, while Commercial's net written premiums rose 7.2% to $1.6 billion [7]. - International's net written premiums remained flat at $391 million, and Life & Group's net earned premiums decreased by 2.8% to $106 million [8]. Financial Update - The core return on equity expanded by 40 basis points to 11%, while book value per share decreased by 2% to $45.25 [9]. - Statutory capital and surplus increased by 0.3% to $11.2 billion at the end of Q2 [9]. Dividend Update - The board of directors approved a quarterly dividend of 46 cents per share, payable on September 4, 2025 [11]. Market Outlook - Estimates for CNA Financial have been revised upward by 5.91% in the past month, indicating positive investor sentiment [12]. - The stock holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [14]. Industry Comparison - CNA Financial operates within the Zacks Insurance - Property and Casualty industry, where competitor W.R. Berkley reported revenues of $3.64 billion, reflecting a year-over-year increase of 7.9% [15].

Group 1 - CNA Financial shows a noticeable improvement in earnings outlook, making it an attractive investment option [1] - Analysts are raising earnings estimates for CNA Financial, indicating growing optimism about the company's earnings prospects [2][3] - The Zacks Rank system, which has a strong track record of outperformance, supports the positive sentiment around CNA Financial [3] Group 2 - The current-quarter earnings estimate for CNA Financial is projected at $1.17 per share, reflecting an 8.3% year-over-year increase, with a 5.91% rise in consensus estimates over the last 30 days [5] - For the full year, the earnings estimate is $4.49 per share, which is a 7.0% decrease from the previous year, but recent revisions have been positive [6] - The favorable estimate revisions have led to a Zacks Rank of 2 (Buy) for CNA Financial, indicating strong potential for outperformance [7] Group 3 - CNA Financial's stock has increased by 8.6% over the past four weeks, suggesting further upside potential [8]

Core Viewpoint - Investors are evaluating CNA Financial and Cincinnati Financial to determine which stock presents a better value opportunity for investment [1] Valuation Metrics - Both CNA Financial and Cincinnati Financial currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - CNA has a forward P/E ratio of 10.77, significantly lower than Cincinnati Financial's forward P/E of 25.84 [5] - The PEG ratio for CNA is 4.32, while Cincinnati Financial's PEG ratio is higher at 7.43, suggesting that CNA may be more attractive based on expected earnings growth [5] - CNA's P/B ratio stands at 1.2, compared to Cincinnati Financial's P/B ratio of 1.64, further indicating a more favorable valuation for CNA [6] - Based on these valuation metrics, CNA earns a Value grade of A, while Cincinnati Financial receives a Value grade of C [6] Investment Outlook - Both companies exhibit solid earnings outlooks, but CNA is identified as the superior value option based on the discussed valuation figures [7]