Cincinnati Financial (CINF) Reaches New Lifetime High Today - TheStreet

Trade-Ideas LLC identified

Cincinnati Financial

(

CINF

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cincinnati Financial as such a stock due to the following factors:

  • CINF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.7 million.
  • CINF has traded 12,589 shares today.
  • CINF is trading at a new lifetime high.

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More details on CINF:

Cincinnati Financial Corporation engages in the property casualty insurance business in the United States. It operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The stock currently has a dividend yield of 3%. CINF has a PE ratio of 16. Currently there is 1 analyst that rates Cincinnati Financial a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Cincinnati Financial has been 735,600 shares per day over the past 30 days. Cincinnati Financial has a market cap of $10.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.07 and a short float of 2% with 4.62 days to cover. Shares are up 18.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cincinnati Financial as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity, solid stock price performance and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • CINF's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has slightly increased to $285.00 million or 1.06% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.96%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CINCINNATI FINANCIAL CORP's earnings per share declined by 5.4% 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, CINCINNATI FINANCIAL CORP increased its bottom line by earning $3.19 versus $3.13 in the prior year. This year, the market expects an improvement in earnings ($3.30 versus $3.19).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, CINCINNATI FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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