Loews (L) AI Stock Analysis

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Loews

(NYSE:L)

Rating:66Neutral

Price Target:

$97.00

▲(1.67% Upside)

Loews' overall score is driven primarily by its financial stability and positive technical indicators. The financial performance reflects consistent profitability, although revenue and asset contraction pose challenges. Technical analysis shows a bullish momentum, enhancing the stock's attractiveness. Valuation metrics suggest a fair price but limited income potential. The recent shareholder meeting supports the company's strategic direction, further solidifying its stable outlook.

Positive Factors

Company Outlook

GE Vernova Inc.: Q1 Results Beat; Strong Start to 2025 and Positive Outlook.

Financial Performance

Labcorp Holdings Inc. had a very solid first-quarter performance.

Regulatory Impact

ResMed Inc.: In-Line Results Better than Feared; Tariff Exemption a positive.

Negative Factors

Product Performance

Regeneron Pharmaceuticals' Eylea did not meet the already low expectations.

Profitability

Sage Therapeutics, Inc. is on a long road to profitability.

Revenue Guidance

Thermo Fisher Scientific lowers 2025 Revenue/EPS Guidance.

Loews (L) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$19.56B

Dividend Yield0.26%

Average Volume (3M)755.54K

Price to Earnings (P/E)15.0

Beta (1Y)0.45

Revenue Growth8.27%

EPS Growth-7.92%

CountryUS

Employees13,000

SectorFinancial

Sector Strength70

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)2.16

Shares Outstanding207,426,390

10 Day Avg. Volume747,761

30 Day Avg. Volume755,544

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.48

Enterprise Value/Revenue1.62

Enterprise Value/Gross Profit3.45

Enterprise Value/Ebitda14.68

Forecast

1Y Price Target

$141.00

Price Target Upside47.78% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Loews Business Overview & Revenue Model

Company DescriptionLoews Corporation is a diversified holding company that operates through various segments, including insurance, hospitality, natural gas distribution, and packaging. Founded in 1902 and headquartered in New York City, Loews has built a portfolio that includes well-known subsidiaries such as CNA Financial, a leading property and casualty insurance company, and Loews Hotels, which operates a collection of luxury hotels and resorts across the United States and Canada. The company's diverse operations allow it to leverage synergies across sectors while mitigating risks associated with economic fluctuations.

How the Company Makes MoneyLoews Corporation generates revenue through multiple streams. Its insurance segment, CNA Financial, contributes significantly to earnings by providing various property and casualty insurance products, earning premiums from policyholders. The hospitality segment, Loews Hotels, generates revenue from room bookings, food and beverage services, and event hosting at its hotel properties. The natural gas distribution segment earns revenue through the sale and transportation of natural gas to residential, commercial, and industrial customers. Additionally, Loews benefits from its investments in publicly traded securities and other financial assets. Significant partnerships with various businesses and brands in the hospitality sector also enhance its revenue capabilities, while prudent capital management and investment strategies contribute to overall profitability.

Loews Key Performance Indicators (KPIs)

Any

Net Income by Segment

Net Income by Segment
Shows profitability across various business segments, offering insight into which parts of the company are most financially successful and efficient.

Chart InsightsCNA Financial's net income shows a volatile pattern, with a notable dip in late 2024, possibly due to external pressures or strategic shifts. Diamond Offshore remains stagnant, reflecting ongoing challenges in the sector. Boardwalk Pipelines exhibits steady growth, suggesting robust demand or operational improvements. Loews Hotels' recovery post-pandemic is inconsistent, indicating potential market or operational hurdles. Corporate Investment Income fluctuates, highlighting sensitivity to market conditions. The 'Other' segment's persistent losses could signal structural inefficiencies. Investors should monitor CNA's performance closely, as it significantly impacts overall profitability.

Data provided by:

Main Street Data

Loews Earnings Call Summary

Earnings Call Date:Aug 04, 2025

(Q4-2024)

% Change Since: 5.67%|

Next Earnings Date:Nov 03, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong financial performance with significant revenue and market share growth, supported by strategic expansions and digital sales gains. However, there were challenges such as decreased GAAP net earnings due to a non-cash charge, impacts from the Canada Post strike, vendor price increases, currency fluctuations, and a strategic exit from the electronics category. Overall, the positives slightly outweigh the negatives, indicating a positive sentiment.

Q4-2024 Updates

Positive Updates

Record Revenue and Earnings Growth

Loblaws reported full-year revenue of $61 billion and adjusted earnings of over $2.6 billion. Adjusted diluted net earnings per share grew by 10% to $2.20.

Expansion and Investment Plan

Loblaws plans to reinvest over $10 billion into the Canadian economy over the next five years, including opening another 80 stores and approximately 100 pharmacist care clinics in 2025.

Market Share and Sales Growth

Loblaws reported its best full-year food market share growth in more than a decade, with absolute sales growth of 3.7% and same-store sales increasing by 2.5%.

Strong Digital Sales Performance

Online sales increased by 18.4% in the quarter, with full-year sales growing by 16.9% to $3.9 billion.

Successful New Store Openings

Loblaws opened 26 new grocery stores in Q4, including its first TNT supermarket in Seattle, Washington, and concluded its network optimization initiative in Quebec.

Negative Updates

GAAP Net Earnings Decreased

GAAP net earnings decreased by 14.6%, primarily due to a non-cash charge of $129 million related to the revaluation of the PC Optimum program liability.

Impact of Canada Post Strike

The Canada Post strike led to a decline in convenience category sales, including a 3.1% decrease in front-store same-store sales.

Pressure from Vendor Price Increases and Currency Fluctuations

Loblaws faced higher than normal pricing increases from global vendors and inflationary pressure due to the Canadian dollar trading at its lowest level in over 20 years.

Exit from Electronics Category

Loblaws decided to exit certain low-margin electronics categories, which is expected to impact front-store sales by about 1% in 2025.

Company Guidance

In the fourth quarter of 2024, Loblaws Incorporated reported strong financial performance, with full-year revenue reaching $61 billion and adjusted earnings surpassing $2.6 billion. The company achieved a 2.9% increase in consolidated revenue for the quarter, totaling $14.9 billion, while adjusted EBITDA grew by 4%. Adjusted diluted net earnings per share rose by 10% to $2.20, although GAAP net earnings decreased by 14.6% due to a $129 million non-cash charge related to the PC Optimum program. Loblaws repurchased $1.8 billion worth of shares and increased its dividend per share by 13.9%. The company also expanded its retail footprint by adding 52 new food and drug retail stores and 78 pharmacy care clinics, representing a 1.1% increase in square footage. Looking ahead, Loblaws plans to invest over $10 billion in the Canadian economy over the next five years, including opening 80 new stores and approximately 100 pharmacist care clinics in 2025. Despite challenges such as inflationary pressures and a declining Canadian dollar, the company anticipates high single-digit growth in adjusted earnings per share for 2025, bolstered by an additional fiscal week and continued investment in its retail and distribution networks.

Loews Financial Statement Overview

Summary

Loews demonstrates financial stability with consistent profitability and strong equity management. However, revenue contraction and asset base reduction are concerns. Cash flows are positive, but recent data gaps prevent a full assessment. The company's financials suggest a cautious but stable outlook in the insurance industry.

Income Statement

Positive

Loews has shown resilience with a stable gross profit margin as revenue remained consistent over the years. Despite a dip in revenue in 2024, net profit margin and EBIT margin have been stable, indicating efficient cost management. However, revenue growth is a concern with a negative trend observed recently, and EBIT has been volatile, impacting profitability.

Balance Sheet

Positive

The debt-to-equity ratio is reasonable, indicating manageable leverage levels. Stockholders' equity has grown, improving the equity ratio, which suggests a stable financial footing. Return on equity has been solid, reflecting efficient use of equity to generate profits. However, the decline in total assets in recent years could pose a risk to future growth.

Cash Flow

Neutral

Operating cash flow remains strong, exceeding net income consistently, which is positive for liquidity. Free cash flow has shown growth, though with fluctuations, indicating potential volatility in cash generation. The absence of recent free cash flow data limits the analysis of current cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.94B	17.51B	15.68B	14.04B	13.73B	13.79B
Gross Profit	8.41B	17.51B	6.97B	5.91B	5.91B	13.79B
EBITDA	1.98B	2.90B	2.91B	1.62B	3.10B	-215.00M
Net Income	1.35B	1.41B	1.43B	822.00M	1.56B	-931.00M
Balance Sheet
Total Assets	84.67B	81.94B	79.20B	75.49B	81.63B	80.24B
Cash, Cash Equivalents and Short-Term Investments	6.51B	6.90B	5.89B	43.01B	49.85B	49.76B
Total Debt	8.95B	8.94B	9.00B	9.02B	9.08B	10.11B
Total Liabilities	66.28B	64.01B	62.67B	60.37B	62.45B	61.05B
Stockholders Equity	17.51B	17.07B	15.70B	14.35B	17.85B	17.86B
Cash Flow
Free Cash Flow	3.07B	2.39B	3.22B	2.65B	2.14B	1.03B
Operating Cash Flow	3.61B	3.02B	3.91B	3.31B	2.62B	1.75B
Investing Cash Flow	-1.71B	-1.98B	-2.75B	-2.35B	-1.19B	-1.41B
Financing Cash Flow	-1.94B	-898.00M	-1.30B	-1.04B	-1.29B	-198.00M

Loews Technical Analysis

Technical Analysis Sentiment

Positive

Last Price95.41

Price Trends

50DMA

90.88

Positive

100DMA

89.18

Positive

200DMA

86.65

Positive

Market Momentum

MACD

1.01

Negative

RSI

66.56

Neutral

STOCH

91.35

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For L, the sentiment is Positive. The current price of 95.41 is above the 20-day moving average (MA) of 92.30, above the 50-day MA of 90.88, and above the 200-day MA of 86.65, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 66.56 is Neutral, neither overbought nor oversold. The STOCH value of 91.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for L.

Loews Risk Analysis

Loews disclosed 63 risk factors in its most recent earnings report. Loews reported the most risks in the "Production" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Loews Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	82 Outperform	$26.55B	15.93	20.63%	2.21%	11.41%	15.32%
CINF	74 Outperform	$23.67B	13.13	13.44%	2.18%	9.64%	-15.08%
CNA	74 Outperform	$12.86B	14.77	8.54%	7.92%	6.12%	-31.43%
AFG	73 Outperform	$10.91B	14.35	17.17%	7.03%	3.35%	-14.16%
MKL	70 Outperform	$24.39B	11.56	13.23%	―	1.66%	8.51%
L	66 Neutral	$19.56B	15.00	7.96%	0.26%	8.27%	-7.92%
Sector *	65 Neutral	£5.46B	8.75	9.49%	5.11%	10.05%	-13.15%

* Financial Sector Average

Performance Comparison

Loews

95.41

17.27

22.10%

AFG

American Financial Group

133.80

14.21

11.88%

CINF

Cincinnati Financial

154.01

27.17

21.42%

CNA

CNA Financial

47.97

2.46

5.41%

MKL

Markel

1,962.60

418.11

27.07%

WRB

W. R. Berkley Corporation

71.35

15.17

27.00%

Loews Corporate Events

Shareholder MeetingsBusiness Operations and Strategy

Loews Holds Annual Shareholder Meeting on May 13

Positive

May 13, 2025

On May 13, 2025, Loews Corporation held its Annual Meeting of Shareholders, where several key proposals were voted upon. Shareholders elected the company’s nominees for director, approved executive compensation on an advisory basis, ratified Deloitte & Touche LLP as the independent auditor for 2025, and approved the 2025 Incentive Compensation Plan. These decisions reflect shareholder support for the company’s current management and strategic direction, potentially impacting its operational and financial strategies moving forward.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 04, 2025