Key Takeaways Insurers like TRV, AXS, JXN, LNC, and GL have beaten the market in 2025 with more gains expected in 2026.Strong underwriting, capital position and digital upgrades helped insurers thrive despite catastrophe losses.Insurers continue to boost dividends, expand via M&A, and benefit from diversified investment portfolios.As we move closer to wrapping up 2025, we are all hoping for a prosperous 2026, which, in turn, will be reflected in our investment portfolio. Despite an active catastrophe enviro ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

Group 1 - Lincoln National Corporation (LNC) is a significant player in the financial services sector, offering a variety of insurance and investment products [1][5] - Morgan Stanley has maintained an "Overweight" rating for LNC, with a revised price target of $54, indicating a positive outlook for the stock [1][5] - LNC's current stock price is $45.42, reflecting a slight increase of 0.79% with a trading range between $45.315 and $46.52 for the day [3][5] Group 2 - Lincoln Financial has launched a new investment option for fixed indexed annuities (FIA), the 1 Year Capital Group Dividend Value (CGDV) ETF Participation account, which offers 100% downside protection and diversified equity exposure [2][5] - The market capitalization of Lincoln National Corporation is approximately $8.63 billion, highlighting its substantial presence in the financial market [4] - The trading volume for LNC is 125,649 shares, indicating active investor interest in the stock [4]

Core Insights - Lincoln Financial has appointed Nilanjan (Neel) Adhya as Executive Vice President, Chief AI, Data and Analytics Officer, effective January 9, 2026, to enhance AI and data capabilities within the company [1][3] Company Overview - Lincoln Financial operates across four core businesses: annuities, life insurance, group protection, and retirement plan services, serving approximately 17 million customers as of December 31, 2024 [5] - The company reported $347 billion in end-of-period account balances, net of reinsurance, as of September 30, 2025 [5] Leadership Background - Adhya previously served as Chief Digital Officer and Global Head of Digital Platforms and Experiences at BlackRock, where he led AI initiatives and modernized digital strategies [2] - He has 25 years of experience in product and customer-experience driven business transformations, including 16 years at IBM in various leadership roles [4] Strategic Vision - Ellen Cooper, Chairman, President and CEO of Lincoln Financial, emphasized the importance of AI and data in optimizing the company's operating model for future growth [3] - Adhya expressed his commitment to applying AI and data in a disciplined manner to enhance customer experience, improve operational efficiency, and foster innovation [5]

Core Viewpoint - Lincoln National (LNC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and changes in these estimates are strongly correlated with stock price movements [4][6]. - Rising earnings estimates for Lincoln National suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Recent Performance and Projections - For the fiscal year ending December 2025, Lincoln National is expected to earn $7.85 per share, with no year-over-year change, but the Zacks Consensus Estimate has increased by 7.3% over the past three months [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - The upgrade of Lincoln National to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Lincoln National Corporation (LNC) reported a 2% increase in shares following the release of its third-quarter 2025 results, driven by strong annuity deposits and solid performance in Group Protection and Life Insurance [1] - The company achieved adjusted earnings per share (EPS) of $2.04, exceeding the Zacks Consensus Estimate by 10.9%, although it represented a 1% decline year over year [2] - Adjusted operating revenues grew 3.8% year over year to $4.8 billion, but fell short of the consensus estimate by 0.5% [2] Financial Performance - LNC's estimated Risk-Based Capital (RBC) ratio increased to over 420% by the end of the third quarter [3] - Insurance premiums rose 1.4% year over year to $1.6 billion, missing the Zacks Consensus Estimate by 2.1% [3] - Fee income reached $1.4 billion, up 2.4% year over year, but also missed the consensus mark by 2.2% [3] - Net investment income increased by 9% year over year to $1.5 billion, surpassing the consensus estimate by 6.2% [3] Revenue and Expense Analysis - Other revenues amounted to $206 million, reflecting a 28.8% year-over-year increase [4] - Total expenses decreased by 16.3% year over year to $4 billion [4] - Interest credited rose 8.4% year over year to $954 million [4] - The company reported a net income of $445 million, a significant recovery from a net loss of $528 million in the prior-year quarter [4] Segment Performance - The Annuities segment's operating income was $310 million, a 3% year-over-year increase, exceeding the consensus estimate [6] - Life Insurance operating income improved to $25 million, up from $22 million year over year, benefiting from stable mortality and higher alternative investment income [7] - Group Protection segment's operating income surged 36.7% year over year to $149 million, supported by favorable life experience [8] - Retirement Plan Services segment recorded an operating income of $46 million, a 5% year-over-year increase, aided by favorable equity markets [10] Financial Position - As of September 30, 2025, Lincoln National had cash and invested cash of $10.7 billion, up from $5.8 billion at the end of 2024 [12] - Total assets increased to $415.3 billion from $390.8 billion at the end of 2024 [12] - Long-term debt decreased to $5.8 billion from $5.9 billion as of December 31, 2024 [12] - Total stockholders' equity rose to $10.5 billion from $8.3 billion at the end of 2024 [12] Dividend and Outlook - Lincoln National paid out quarterly dividends of $85 million [14] - For 2026, the company projects that the Annuities, Life Insurance, Group Protection, and Retirement Plan Services units will account for 55-65%, 10-15%, 20-30%, and 5-15% of total operating income, respectively [15]

Core Viewpoint - Stocks priced between $10 and $50 present a balance of affordability and stability, but investors should be cautious as some may have weak business models [1] Group 1: Stocks to Sell - **Camping World (CWH)**: - Current share price is $12.12, with a forward P/E of 15.5x [2][4] - The company has faced challenges in attracting new customers to its physical locations, leading to poor same-store sales performance [8] - **Lincoln Financial Group (LNC)**: - Current share price is $40.84, trading at 0.8x forward P/B [5][7] - The company has seen a decline in book value per share, which fell by 14.9% annually over the last five years, indicating unfavorable trends in the insurance sector [9] Group 2: Stock to Buy - **Upwork (UPWK)**: - Current share price is $16.52 [10] - The company has experienced a 9.4% annual growth in average revenue per customer over the last two years, indicating successful monetization efforts [11] - Earnings per share have grown by 123% annually over the last three years, outpacing revenue growth and enhancing profitability [11] - Free cash flow margin has increased by 29.3 percentage points in recent years, providing the company with more financial flexibility [11]

Group 1: Stock Recommendations - SB Financial Group, Inc. (SBFG) has seen a 5.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 3.1%, above the industry average of 2.7% [1] - Universal Corporation (UVV) has experienced a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, with a dividend yield of 6.4%, significantly higher than the industry average of 3.2% [2] - Lincoln National Corporation (LNC) has had a 5.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2: Dividend Yields - A Zacks Rank 1 company has a dividend yield of 4.5%, which is considerably higher than the industry average of 1.6% [3]

Core Viewpoint - Lincoln National (LNC) shares have performed strongly over the past year, gaining over 20% due to strategic actions taken by the company to enhance its capital position and strengthen its balance sheet [1] Group 1: Company Actions - The company has sold a stake to Bain Capital as part of its efforts to improve its capital position [1] Group 2: Performance Metrics - Lincoln National's stock has increased by over 20% in the past year, indicating strong market performance [1]

Financial Performance - As of September 30, 2025, Lincoln National Corporation reported a total investment fair value of $103.813 billion, with 92% priced using observable inputs[288]. - As of September 30, 2025, the net income was $445 million, compared to a net loss of $528 million for the same period in 2024[324]. - Income from operations is emphasized as a key profitability measure, reflecting ongoing business performance[276]. - Income from operations for the nine months ended September 30, 2025, was $886 million, compared to $857 million for the same period in 2024, indicating a growth of 3.4%[329]. - Operating revenues for the three months ended September 30, 2025, were $1,270 million, compared to $1,195 million for the same period in 2024, reflecting an increase of 6.3%[329]. - The company experienced a credit loss-related adjustment of $(38) million for the three months ended September 30, 2025[324]. - The annual assumption review resulted in a net income impact of $(50) million for the three months ended September 30, 2025, driven by updates to policyholder behavior assumptions[314]. Investment and Asset Management - The company maintains its investment holdings throughout credit cycles due to its strong capital position and the long-term nature of its liabilities[401]. - The investment portfolio is diversified across asset classes, including fixed maturity securities, mortgage loans, and other long-term investments, which are aligned with the liabilities of the products supported[400]. - The company emphasizes a balanced investment approach focusing on generating sufficient current income net of income tax to meet obligations to customers and general liabilities[399]. - Total investments as of September 30, 2025, reached $136,102 million, an increase from $129,918 million as of December 31, 2024, representing a growth of approximately 4.5%[398]. - The estimated fair value for all private placement securities was $22.4 billion as of September 30, 2025, representing 16% of total investments[413]. - The company’s investment strategy includes evaluating expected returns and risks of each asset class to support effective asset-liability management[399]. Business Segments - The company operates through four business segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services[278]. - Annuities segment reported income of $310 million for the three months ended September 30, 2025, up from $301 million in 2024[324]. - Group Protection segment income increased to $149 million for the three months ended September 30, 2025, compared to $109 million in 2024[324]. - Total operating revenues for Life Insurance reached $1,610 million for the three months ended September 30, 2025, compared to $1,589 million in 2024, reflecting a growth of 1.3%[344]. - Operating revenues for Retirement Plan Services for the three months ended September 30, 2025, totaled $343 million, up from $335 million in 2024[373]. Risk Management - The company faces risks from adverse economic conditions, including low interest rates that could reduce investment income and profitability[270]. - The company has identified various risks related to changes in interest rates, which could affect profitability and capital position[285]. - The company conducts a comprehensive review of actuarial assumptions quarterly, with significant assumptions including mortality rates, morbidity, and policyholder behavior[292]. - The company utilizes derivative instruments to hedge exposure to equity market and interest rate changes associated with GLB and GDB riders[304]. Capital and Liquidity - The company’s liquidity and capital resources are influenced by the ability of subsidiaries to pay dividends, which is critical for meeting obligations[270]. - LNC's long-term debt stood at $5.772 billion as of September 30, 2025, after accounting for various repayments and issuances[453]. - Total cash dividends and return of capital from subsidiaries amounted to $615 million for the nine months ended September 30, 2025, up from $410 million in 2024[443]. - LNC made capital contributions of $967 million to subsidiaries for the nine months ended September 30, 2025, including $800 million to LNL in Q2 2025[450]. Market Conditions - The Federal Reserve reduced the federal funds rate target range to 3.75% to 4.00% in October 2025, impacting the interest rate environment[284]. - A decrease of 25 basis points in interest rates could lead to a hypothetical effect on net income of $(400) million, whereas an increase of 25 basis points would result in a $375 million increase[308]. - The hypothetical effect on net income from a -10% equity market return is estimated at $(825) million, while a +10% return would result in a $725 million increase[308]. Shareholder Returns - Total cash returned to common stockholders, including dividends, was $239 million for the nine months ended September 30, 2025, compared to $229 million in 2024[459]. - Preferred stock dividends totaled $80 million for the nine months ended September 30, 2025, consistent with the same period in 2024[456]. - The company issued approximately 18.8 million shares of common stock for $825 million as part of a transaction with Bain Capital, aimed at supporting strategic priorities[457].