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Cincinnati Financial Corporation CINF has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of March 25, 2025, was $145.80, down 9.8% from its 52-week high of $161.75.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
With a market capitalization of $22.82 billion, the average volume of shares traded in the last three months was 0.8 million.
CINF Price Movement vs. 50-Day Moving Average
Image Source: Zacks Investment Research
Price Performance
Shares of CINF have gained 18.2% in the past year, outperforming the Finance sector and the S&P 500 composite’s return of 16.4% and 10.4%, respectively. It, however, underperformed the industry’s growth of 22.9%.
CINF Lags Industry, Outperform Sector and S&P 500 in 1 Year
Image Source: Zacks Investment Research
CINF’s Growth Projection Encourages
The Zacks Consensus Estimate for Cincinnati Financial’s 2025 revenues is pegged at $11.23 billion, implying a year-over-year improvement of 12.9%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 52.5% and 8%, respectively, from the corresponding 2025 estimates.
Earnings have grown 15.8% in the past five years. CINF beat earnings estimates in three of the past four quarters and missed in one, with an average surprise of 24.32%.
Attractive Valuation
Its shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.64X is lower than the industry average of 1.65X.
Shares of NMI Holdings Inc NMIH are trading at a discount to the industry average, while The Travelers Companies, Inc. TRV and Palomar Holdings, Inc. PLMR are trading at a multiple higher than the industry average.
Factors Acting in Favor of CINF
Prudent pricing, an agent-centric model, a higher level of insured exposures and disciplined expansion of Cincinnati Re should benefit premiums, the primary driver of an insurer’s top line. CINF boasts above-average industry premium growth.
The Excess and Surplus line has been performing well since its inception in 2008. This segment should continue to benefit from new business-written premiums, higher renewal-written premiums and higher average renewal estimated pricing. Technology and data are also used to identify new exposures in emerging businesses.
Improving interest income from fixed-maturity securities and a decrease in equity portfolio dividends in an improved rate environment should drive net investment income.
Notably, its free cash flow conversion has remained more than 150% over the last few quarters, reflecting its solid earnings.