Arch Capital’s earnings surpassed estimates in all the last four quarters, the average beat being 26.8%. Some better-ranked stocks from the insurance space are Arch Capital Group (ACGL Quick QuoteACGL – Free Report) , Axis Capital Holdings (AXS Quick QuoteAXS – Free Report) and ProAssurance (PRA Quick QuotePRA – Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
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ProAssurance’s earnings surpassed estimates in two of the last four quarters while missing in the other two. This new launch adds to the company’s existing Electronic Business Center agent portal, which gives access to digital tools, enhancing transparency, in one centralized location. As the company continues to invest in technology, it aims to drive growth using this as a competitive advantage and save on expenses in the future. The Hartford Financial Services Group announced a quarterly dividend on Wednesday, July 19th.
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Apart from expanding product breadth and distribution relationships, the company places equal importance on advancing technological expertise to enhance underwriting capabilities. The Hartford Financial Services Group’s stock is owned by a variety of retail and institutional investors. Top institutional shareholders include BlackRock Inc. (8.48%), State Street Corp (5.65%), Geode Capital Management LLC (2.14%), Dimensional Fund Advisors LP (1.87%), Hotchkis & Wiley Capital Management LLC (1.61%) and LSV Asset Management (1.59%).
Hartford Financial is the second-largest player in the US workers’ compensation market as indicated in the «Company Description» section of this article. The first potential catalyst for Hartford Financial is continued share buybacks. It is also worth noting that Hartford Financial’s historical ROEs have been higher than most of the company’s listed peers as highlighted in the chart below.
Hartford Financial: Cheap With Catalysts
Investors of record on Friday, September 1st will be paid a dividend of $0.425 per share on Tuesday, October 3rd. This represents a $1.70 dividend on an annualized basis and a dividend yield of 2.32%. The company is scheduled to release its next quarterly earnings announcement on Thursday, October 26th 2023. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The insurance company remains strong and has a lot of positives on the horizon.
I view Hartford Financial’s shares as cheap based on historical and peer valuation comparisons. Future share buybacks and the resilience of the workers’ compensation business are expected to act as favorable re-rating catalysts for HIG. As such, I am bullish on HIG, which translates into a Buy rating for the stock. The proof is in the pudding, and I expect HIG to prove to the market over time that medical inflation will have a very limited impact on its workers’ compensation business and the company’s overall performance. A sell-side analyst from BMO questioned at HIG’s Q results briefing whether «an uptick in medical inflation» has affected the company’s workers’ compensation business.
The Hartford Names Laura Hamilton Head Of Western Division Field Sales And Underwriting For Middle And Large Commercial
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The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Shares of Hartford Financial Services Group Inc. dropped 1.1% in premarket trading Tuesday, after the property and casualty insurer said it has rejected Chubb Ltd.’s unsolicited buyout bid.
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Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. https://1investing.in/ The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
Prudential Financial Inc. reduces stake in The Hartford Financial … – Best Stocks
Prudential Financial Inc. reduces stake in The Hartford Financial ….
Posted: Sun, 10 Sep 2023 20:28:47 GMT [source]
Looking forward, HIG stressed at its Q results call that «we are confident in our ability to deliver core earnings ROE in the 14% to 15% range» going forward. The new portal will improve speed to market, make data and information sharing quicker, simplify submissions, improve accuracy and streamline workflow. The company has partnered with Highwing, Inc., which provides processing and data management solutions for carriers and brokers. Highwing connects brokers and agents with carriers, improving transparency and ensuring accurate data transfer and open communication. The Hartford Financial Services Group’s stock was trading at $75.83 at the start of the year. Since then, HIG shares have decreased by 3.3% and is now trading at $73.34.
Consumer prices rose 3.7% year over year during the month of August, higher than the expected 3.6% rate and up from July’s 3.2% increase. US stocks rose Wednesday as traders digested hotter-than-expected inflation during the month of August. HIG’s shares are cheap, and I expect catalysts relating to its workers’ compensation business and share repurchases to be supportive of a positive re-rating. Therefore, I have decided to rate Hartford Financial as a Buy. Consistent share buybacks will help to provide support for Hartford Financial’s share price and boost the company’s ROE with the shrinkage of its equity base. With the company consistently generating ROEs in the low-to-mid teens percentage range, I think that HIG deserves to command a P/E multiple of 10 times or higher.
- High-growth stocks tend to represent the technology, healthcare, and communications sectors.
- Thirdly, there is a significant mismatch between Hartford Financial’s high single-digit P/E multiple and the company’s low-to-mid-teens percentage ROE.
- One share of HIG stock can currently be purchased for approximately $73.34.
- A sell-side analyst from BMO questioned at HIG’s Q results briefing whether «an uptick in medical inflation» has affected the company’s workers’ compensation business.
- Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
12 Wall Street analysts have issued «buy,» «hold,» and «sell» ratings for The Hartford Financial Services Group in the last twelve months. There are currently current liabilities do not consist of 5 hold ratings and 7 buy ratings for the stock. The consensus among Wall Street analysts is that investors should «moderate buy» HIG shares.
Compare
HIG’s historical performance
against its industry peers and the overall market. Chubb Ltd., one of the nation’s biggest, oldest and best-known property-casualty insurers, has made a preliminary proposal to acquire Hartford Financial Services Group Inc., another storied name in the industry. HIG’s second potential catalyst is the alleviation of the market’s concerns regarding the future profitability of its workers’ compensation business.
Hartford Financial Services Group Inc (HIG) Stock by the Numbers – InvestorsObserver
Hartford Financial Services Group Inc (HIG) Stock by the Numbers.
Posted: Fri, 01 Sep 2023 07:00:00 GMT [source]
HIG’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. But despite hotter inflation, traders are still largely expecting the Fed to pause interest rate hikes at its next policy meeting.
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