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With a market cap of $22 billion, New York-based Loews Corporation (L) is a diversified company that provides commercial property and casualty insurance in the United States and internationally through its subsidiaries. It offers a wide range of specialty and standard insurance products, along with risk management services, catering to businesses, professionals, and the healthcare sector.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and Loews fits this criterion perfectly. Beyond insurance, the company is involved in energy transportation, hospitality, and the manufacturing of plastic containers and resins.
Shares of the commercial property and casualty insurance company have declined 10.7% from its 52-week high of $121.01. Loews stock has risen marginally over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 1.5% gain over the same time frame.
Loews stock is up 2.5% on a YTD basis, underperforming NASX’s 15.8% return. Moreover, shares of the company have gained 11.6% over the past 52 weeks, compared to NASX’s 18.9% increase over the same time frame.
Despite recent fluctuations, the stock has been trading above its 200-day moving average since last year.
Loews has underperformed due to weaker underwriting performance at CNA, with rising loss costs, unfavorable reserve development, and pressure on its combined ratio. Growth in Boardwalk Pipelines and Loews Hotels has helped offset some of the weakness, but the insurance business remains a key drag on overall results.
In comparison, rival The Progressive Corporation (PGR) has underperformed Loews stock. PGR stock has fallen nearly 12% over the past 52 weeks and 6.3% on a YTD basis.
Due to its underperformance relative to the Nasdaq, the stock has a consensus rating of “Strong Sell.” The mean price target of $217 suggests a premium of nearly 101% to current levels.
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