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To be a shareholder in CNA Financial, you need to believe in the company’s ability to deliver disciplined underwriting and specialty insurance growth while adapting to shifting risks. The latest executive appointments, expanding internal leaders’ roles across core business lines, support CNA’s push to reinforce underwriting capabilities; however, these personnel changes do not materially affect the key short-term catalyst, the continuation of premium growth and rate momentum, or the biggest risk, volatility from catastrophe losses and rising loss ratios.
Of all recent company developments, the launch of Cardinal E&S in June stands out as directly complementing the new leadership structure. This business expansion aims to solidify CNA’s specialty presence at a time when operational and segment specialization, now overseen by newly appointed executives, is an important catalyst for supporting revenue and margin growth potential.
However, it’s important to consider that even experienced leadership is not immune to the risks of elevated catastrophe losses and the impact they could have on underwriting...
Read the full narrative on CNA Financial (it's free!)
CNA Financial's narrative projects $17.1 billion revenue and $1.7 billion earnings by 2028. This requires 6.2% yearly revenue growth and a $741 million earnings increase from $959 million today.
Uncover how CNA Financial's forecasts yield a $48.37 fair value, in line with its current price.
Simply Wall St Community members share three fair value estimates ranging from US$45.00 to US$65.97, revealing wide uncertainty around CNA’s worth. Many focus on the impact of underwriting performance on results, highlighting the importance of assessing both upside and downside for the stock.
Explore 3 other fair value estimates on CNA Financial - why the stock might be worth as much as 35% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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