Why You Should Still Hold On To Loews Corp (L) Stock
Zacks Investment Research | Dec 08, 2016 09:07PM ET
Shares of Loews Corporation (NYSE:L) have been on an uptrend and have gained 9.26% since the U.S. poll results, outperforming S&P 500’s gain of 4.45%. The Zacks Rank #3 (Hold) multiline insurer has witnessed its full-year estimates moving north by 8% over the last 60 days.
Why the Stock Should be in Your Portfolio
Loews is a holding company that operates through its subsidiaries.
The company aims to strengthen its hotel business – Loews Hotels and Resorts. Loews currently operates a chain of 25 hotels. Nonetheless, it has been eyeing opportunities in Boston, Chicago, San Francisco, Washington, D.C., New York City, Dallas, Toronto and Seattle.
CNA Financial (NYSE:CNA) remains focused on enhancing field operations, enhancing its commercial ventures, as well as growing the origination of its specialty business. These have cushioned CNA Financial and lent it a competitive edge. The company has also been investing in information technology to boost its underwriting capabilities.
Boardwalk Pipeline (NYSE:BWP) has been generating higher revenues from the Gulf South rate case. This is because the Evangeline ethylene pipeline is back in service and growth projects have progressed in 2015. Also, the company believes that demand for U.S. natural gas will gain traction and noted that exports of the commodity are increasing. Moreover, pipeline exports to Mexico are on the rise. The company also noted that the industrial demand for natural gas and liquids is growing due to petrochemical production. The company is thus well positioned to benefit from these tailwinds.
Per media reports, the finance sector is likely to benefit from President-elect Donald Trump’s “business friendly approaches.” Expectation of a lower tax rate, softer regulation and bias for higher interest rates among others raise investor optimism.
Valuation is also reasonable at present as the stock is underpriced on a price to book value basis. On a price-to-book basis, shares are trading at 0.7x compared with the industry average of 3.3x.
Stock to Consider
A better-ranked multiline insurer is FBL Financial Group, Inc. (NYSE:FFG) , which carries a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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