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WIth a market cap of around $19 billion, New York-based Loews Corporation (L) is a diversified holding company with operations in insurance, energy, hospitality, and manufacturing. Its subsidiaries engage in commercial property and casualty insurance, offshore oil and gas drilling, natural gas transportation and storage, hotel management, and plastics manufacturing.
Shares of the commercial property and casualty insurance company have underperformed the broader market over the past 52 weeks. L has risen 25.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.8%. In 2024, shares of L are up 25.1%, slightly lagging behind SPX’s 25.8% gain on a YTD basis.
Focusing more closely, Loews has also lagged behind the Financial Select Sector SPDR Fund’s (XLF) 45.4% return over the past 52 weeks and 36.3% return on a YTD basis.
Loews Corporation reported a strong Q3 performance, with net income rising to $1.82 per share, driven by higher investment income and strong results from its insurance unit, CNA Financial. CNA’s revenue grew to $3.6 billion, with net income increasing to $259 million, reflecting a higher net investment income, though partially offset by increased catastrophe losses. Additionally, Boardwalk Pipelines' revenue rose to $483 million, supported by higher re-contracting rates, while Loews Hotels saw a decline in net income due to an impairment charge for the quarter.
According to one analyst covering the stock, the consensus rating is “Moderate Buy.”
As of writing, Loews is trading significantly below the mean price target of $183, which also represents the Street-high price target.
