/Hartford%20Financial%20Services%20Group%20Inc_%20logo%20and%20chart-by%20IgorGolovniov%20via%20Shutterstock.jpg)
Based in Hartford, Connecticut, The Hartford Financial Services Group, Inc. (HIG) is a major insurance and financial services provider with a market cap of $31.2 billion, specializing in property and casualty insurance, group benefits, and mutual funds. The company is likely to announce its Q4 earnings after the market closes on Thursday, Jan. 30
Ahead of the event, analysts expect HIG to report a profit of $2.68 per share, down 12.4% from $3.06 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
For fiscal 2024, analysts expect HIG to report EPS of $10.05, up 13.2% from $8.88 in fiscal 2023.
HIG stock has soared 33.1% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 22.1% gains and the SPDR S&P Insurance ETF’s (KIE) 20.9% returns over the same time frame.
Over the past year, Hartford Financial Services has surpassed broader market performance, driven by strategic initiatives such as innovative product offerings and acquisitions. These efforts have enhanced its market presence, diversified revenue streams, and bolstered its stock performance.
However, shares of HIG tumbled 6.8% following its Q3 earnings release on Oct. 24. On the bright side, the company demonstrated strong financial performance, with revenue growing 9.4% year-over-year. It achieved a 10% increase in property and casualty written premiums, driven by a 9% rise in commercial lines and a 12% growth in personal lines, reflecting effective customer retention and new business acquisition. Net investment income also increased by over 10% to $659 million, benefiting from higher yields on fixed-income portfolios.
The consensus opinion on HIG stock is reasonably bullish, with an overall “Moderate Buy” rating. Of the 22 analysts covering the stock, nine advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 11 indicate a “Hold.”
HIG's average analyst price target is $128.25, indicating a potential upside of 17.2% from the current levels.
