Rating Change #6
Loews Corporation (L) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- L, with its decline in revenue, slightly underperformed the industry average of 8.6%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- LOEWS CORP's earnings per share declined by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LOEWS CORP increased its bottom line by earning $3.11 versus $1.31 in the prior year. This year, the market expects an improvement in earnings ($3.21 versus $3.11).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has significantly increased by 284.01% to $1,129.00 million when compared to the same quarter last year. In addition, LOEWS CORP has also vastly surpassed the industry average cash flow growth rate of 5.69%.
Loews Corporation, through its subsidiaries, operates primarily as a commercial property and casualty insurance company in the United States. The company has a P/E ratio of 13.9, below the average insurance industry P/E ratio of 14.1 and below the S&P 500 P/E ratio of 17.7. Loews has a market cap of $17.2 billion and is part of the financial sector and insurance industry. Shares are up 9.5% year to date as of the close of trading on Friday.You can view the full Loews Ratings Report or get investment ideas from our investment research center.
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