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Valued at a market cap of $18 billion, New York-based Loews Corporation (L) is a diversified holding company with interests across multiple sectors, including insurance, energy, hospitality, and manufacturing. Its portfolio includes CNA Financial for insurance, Boardwalk Pipeline Partners for natural gas infrastructure, Diamond Offshore for drilling services, and Loews Hotels for hospitality operations.
Shares of this commercial property and casualty insurance company have outperformed the broader market over the past 52 weeks. L has gained 31.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 24.3%. In 2024, shares of L are up 17.4%, closely mirroring SPX’s 17.2% gain on a YTD basis.
However, focusing more closely, Loews has lagged behind the US Insurance iShares ETF’s (IAK) 40.8% gain over the past 52 weeks and a 27.7% YTD return.
Loews Corporation has outperformed over the past year primarily due to significant gains in its insurance segment from higher premiums and favorable claims experience, alongside increased profitability in its energy sector driven by rising commodity prices and strong operational performance. Moreover, the stock recovered 2.1% following its Q2 earnings release on Jul. 29 due to a 2.5% year-over-year increase in profit to $1.67 per share, fueled by higher insurance premiums and an 8% rise in investment income.
Loews Corporation holds a “Moderate Buy” rating from one analyst in coverage, a configuration that has remained unchanged over the past month, reflecting steady confidence in the stock’s potential.
The mean price target of $183, represents a remarkable potential upside of almost 124% to Loews Corporation’s current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
