Benign Growth For CNA Financial Corporation (NYSE:CNA) Underpins Its Share Price
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) above 19x, you may consider CNA Financial Corporation (NYSE:CNA) as an attractive investment with its 9.8x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Recent times have been advantageous for CNA Financial as its earnings have been rising faster than most other companies. One possibility is that the P/E is low because investors think this strong earnings performance might be less impressive moving forward. If you like the company, you’d be hoping this isn’t the case so that you could potentially pick up some stock while it’s out of favour.
