Hartford Financial Shares Near 52-Week High: How to Play the Stock

Core Viewpoint - The Hartford Financial Services Group, Inc. (HIG) has shown significant stock performance, rallying 53.4% year-to-date, outperforming peers and the broader market [1] Stock Performance - HIG's stock closed at $123.31, nearing its 52-week high of$124.90, with a range of $77.59 to$124.90 [1] Earnings Estimates and Valuation - The Zacks Consensus Estimate for HIG's 2024 adjusted earnings is $10.07 per share, reflecting a 13.4$3.7 billion in revenue for Q3, a 10.6% increase year-over-year, while the Personal Lines unit is expected to recover, enhancing profitability [5] - Improved returns from the fixed-income portfolio and higher invested assets are anticipated to boost net investment income [6] - The company has divested non-core operations, improving its risk profile and financial flexibility, allowing for expansion through acquisitions [6] Financial Strength - HIG's total debt to capital ratio stands at 20.4%, lower than the industry average of 31.6%, providing financial flexibility for growth initiatives [7] - In Q3 2024, HIG repurchased shares worth $400 million and increased its quarterly common dividend by 11$688 million reported in the first nine months of 2024, which could impact underwriting results [8] - The Group Benefits segment faced challenges, with core earnings declining 9.4% year-over-year in Q3, and total benefits, losses, and expenses increasing by 8.3% to $5.8 billion [9] Investment Outlook - HIG's strong performance in Commercial and Personal Lines, robust investment income, and shareholder-friendly actions make it an attractive hold for current investors [10] - Prospective buyers may consider waiting for a more favorable entry point due to the stock's high valuation [10]