CNO Financial Group, Inc. CNO benefits from a diversified product portfolio, strategic acquisitions, technological advancements, improved insurance policy income and robust cash generation abilities. A solid earnings per share (EPS) outlook for 2024 also reinforces investors’ confidence in the stock.
CNO Financial currently carries a Zacks Rank #2 (Buy).
The stock has gained 32.2% in the past year compared with the industry’s 16.1% growth. The Zacks Finance sector has increased 18.3% while the S&P 500 composite has risen 27.3% in the same time frame.
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CNO carries an impressive Value Score of A. Value Score helps find stocks that are undervalued. Back-tested results have shown so far that stocks with a favorable Value Score in combination with a solid Zacks Rank are the best investment bets.
The Zacks Consensus Estimate for CNO Financial’s 2024 earnings is pegged at $3.73 per share, indicating growth of 20.7% from the prior-year figure. The consensus mark for 2025 earnings is $3.76 per share, indicating an improvement of 0.6% from the 2024 estimate.
The Zacks Consensus Estimate for 2024 earnings has been revised upward 8.7% in the past 60 days.
CNO Financial’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 24.51%.
Return on equity in the trailing 12 months is currently 17.5% for CNO, which is higher than the industry’s average of 15.3%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
Management anticipates operating EPS to be in the range of $3.50-$3.60 for 2024, the mid-point of which implies a nearly 15% rise from the 2023 figure.
CNO Financial stands to benefit from its diversified product portfolio, which includes annuity, health and life insurance offerings. This broad range of products enables the company to effectively manage risks while maintaining a steady stream of premium income, a key revenue driver. In the first nine months of 2024, insurance policy income accounted for approximately 57% of CNO’s total revenues.
The company’s focus on introducing new products and upgrading existing ones to meet evolving market demands is expected to drive insurance premium growth in the future. CNO Financial leverages acquisitions and partnerships to broaden its product and service offerings, expand its customer base and extend its geographic footprint.
The company is also investing in technology to enhance operational efficiency, improve agent productivity and boost online sales of its insurance products. One example is its digital health insurance marketplace, myHealthPolicy.com, which aligns with the increasing digitization across every sphere of life.
With solid financial strength supported by significant cash reserves and strong cash-generating capabilities, CNO is well-positioned to fund business investments and deliver shareholder value through share repurchases and dividend payouts. In the first nine months of 2024, the company generated $436.7 million in net cash from operations, marking a 7.5% year-over-year increase. Management estimates excess cash flow of $250-$275 million to the holding company for 2024.
Some other top-ranked stocks in the insurance space are The Allstate Corporation ALL, United Fire Group, Inc. UFCS and ProAssurance Corporation PRA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allstate’s earnings surpassed estimates in each of the last four quarters, the average surprise being 135.21%. The Zacks Consensus Estimate for ALL’s 2024 earnings is pegged at $16.27 per share, which has increased more than 17-fold from the prior-year reported figure. The consensus mark for revenues indicates a rise of 12.1% from the year-ago actual. The consensus mark for ALL’s 2024 earnings has moved 1.2% north in the past 30 days.
United Fire’s earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 58.79%. The Zacks Consensus Estimate for UFCS’ 2024 earnings is pegged at $1.84 per share. A loss of $1.22 per share was incurred in the prior year. The consensus estimate for revenues implies an improvement of 13.9% from the year-ago actual. The consensus mark for UFCS’ 2024 earnings has moved 67.3% north in the past 60 days.
The bottom line of ProAssurance outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 61.46%. The Zacks Consensus Estimate for PRA’s 2024 earnings is pegged at 80 cents per share. A loss of 14 cents per share was incurred in the prior year. The consensus mark for PRA’s 2024 earnings has moved 5.3% north in the past 30 days.
Shares of Allstate, United Fire and ProAssurance have gained 41.1%, 43.6% and 12.9%, respectively, in the past year.
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