Is Cincinnati Financial Stock Outperforming the S&P 500?

Fairfield, Ohio-based Cincinnati Financial Corporation (CINF) provides property casualty insurance products. Valued at $22.8 billion by market cap, the company markets a variety of insurance products and provides leasing and financing services.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and CINF perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the proper & casualty insurance industry. 

Despite its notable strength, CINF slipped 9.9% from its 52-week high of $161.75, achieved on Nov. 27, 2024. Over the past three months, CINF stock has gained marginally, outperforming the S&P 500 Index’s ($SPX) 4.4% dip during the same time frame.

In the longer term, shares of CINF rose 1.5% on a YTD basis and climbed 20.7% over the past 52 weeks, outperforming SPX’s YTD losses of 1.8% and solid 10.7% returns over the last year.

To confirm the bullish trend, CINF has been trading above its 200-day moving average over the past year. The stock is trading above its 50-day moving average since late February, with slight fluctuations.

CINF’s strong performance is driven by a notable premium growth and higher net investment income. 

On Feb. 10, CINF shares closed down by 1% after reporting its Q4 results. Its adjusted EPS of $3.14 beat Wall Street expectations of $1.90. The company’s revenue stood at $2.5 billion, down 24.4% year over year.

CINF’s rival, W. R. Berkley Corporation (WRB) shares lagged behind the stock, with an 11.4% gain over the past 52 weeks but outpaced the stock with a 10.1% uptick on a YTD basis.

Wall Street analysts are moderately bullish on CINF’s prospects. The stock has a consensus “Moderate Buy” rating from the 10 analysts covering it, and the mean price target of $151.71 suggests a potential upside of 4.1% from current price levels.