CNA Stock Trading at a Discount to Industry at 1.11X: Time to Buy?

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 1.11X, lower than the industry average of 1.49X, the Finance sector's 4.26X, and the Zacks S&P 500 Composite's 8.19X [2] - The company has a market capitalization of $12.51 billion and an average trading volume of 0.4 million shares over the last three months [3] - CNA Financial's shares closed at $46.23 on Nov. 20, near its 52-week high of $51.42, indicating strong investor confidence and upward momentum as it trades above the 50-day simple moving average of $45.83 [4] - The Zacks Consensus Estimate for CNA Financial's 2025 revenues is $13.53 billion, reflecting a year-over-year improvement of 6.2%, with a 2% increase projected for 2026 [8] Financial Performance - CNA Financial has a trailing 12-month return on equity (ROE) of 12.7%, outperforming the industry average of 8% [12] - The company exited the third quarter with statutory capital and surplus of $11.5 billion, maintaining a conservative capital structure and liquidity through cash and short-term investments [15] - CNA Financial's dividend history shows a 10-year compound annual growth rate (CAGR) of 6.3%, with a current dividend yield of 3.9%, significantly higher than the industry average of 0.2% [16] Growth Projections - Continued premium growth is expected due to solid retention, favorable renewal premium changes, and new business across Specialty, Commercial, and International segments [13] - Analysts have adjusted estimates for CNA Financial, with the consensus for 2025 and 2026 moving up by 7.5% and 0.4%, respectively, over the past 60 days [9] Investment Sentiment - The company has a Value Score of A and a VGM Score of B, indicating attractive value and growth potential [19] - The combination of solid growth projections, attractive valuations, and optimistic analyst sentiment positions CNA Financial as a potential investment opportunity [18]