#3 - Cincinnati Financial (NASDAQ:CINF)
Cincinnati Financial (CINF) RSI Score = 28.87
Investing in oversold stocks is not without risk. And in the case of Cincinnati Financial (NASDAQ:CINF), you should proceed with caution. The company is a diversified insurer that focuses on commercial property and casualty coverage and policies. The company has been named as a defendant in a number of business interruption claims stemming from the shutdown caused by the Covid-19 pandemic.
If the courts rule against Cincinnati Financial, the stock may become worthless. However, CEO Steven Johnston believes the company will be able to avoid major business interruption payments even though the company’s major policies do not make a specific exclusion for pandemics. Investors are more skeptical, and an unfavorable ruling could give the insurance company significant exposure.
In any case, the court case may take some time to work through the courts. And Cincinnati Financial had a strong balance sheet and credit ratings of A and A+ prior to the pandemic.
About Cincinnati Financial
Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States. It operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment offers coverage for commercial casualty, commercial property, commercial auto, and workers' compensation.
Read More - Current Price
- $156.47
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $138.57 (11.4% Downside)
