Yahoo Finance Lincoln National (LNC) Soars 6.5%: Is Further Upside Left in the Stock?
Lincoln National (LNC) shares rallied 6.5% in the last trading session to close at $30.01. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.4% gain over the past four weeks.
Lincoln National extended its rally for the fifth straight day, driven by its focus on growing its Annuities business. New product introductions, for example, the 1 Year S&P 500 Dual Trigger account option, enhance its competitive position. Additionally, Evercore ISI's raised price target for the insurance company has bolstered investor confidence in the stock.
This insurance and retirement business is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of -14.5%. Revenues are expected to be $4.65 billion, down 0.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Lincoln National, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. However, the company can potentially benefit from the improving performance of equity markets, which is expected to positively impact fee income, especially within the annuity segment. So, make sure to keep an eye on LNC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lincoln National belongs to the Zacks Insurance - Life Insurance industry. Another stock from the same industry, Manulife Financial (MFC), closed the last trading session 0.3% lower at $24.30. Over the past month, MFC has returned 1.6%.
Manulife's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $0.66. Compared to the company's year-ago EPS, this represents a change of +13.8%. Manulife currently boasts a Zacks Rank of #3 (Hold).
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Lincoln National Corporation (LNC) : Free Stock Analysis Report
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