The Chaikin Power Gauge RatingTM for The Hartford Financial Services Group Inc. HIG is bullish due to very attractive financial metrics. The rating also reflects weak earnings performance and bearish price/volume activity. HIG’s financial metrics are excellent due to a low price to book value and low price to sales ratio.
Financial Metrics Rating – Very Bullish
HIG’s financial metrics are excellent. The company may be undervalued and has high revenue per share. The rank is based on a high long-term debt to equity ratio relative to its industry group, low price to book value, low return on equity, low price to sales ratio and relatively high cash flow.
Earnings Performance Rating – Bearish
HIG’s earnings performance has been weak. The company experienced relatively poor earnings growth in the past 12 months and has not met analysts’ earnings estimates. The rank is based on worse than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively low projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Bearish
Price and volume activity for HIG is bearish. HIG is experiencing sustained selling and is in a decelerating price trend compared to 4 months ago. The rank for HIG is based on negative Chaikin money flow, a positive Chaikin price trend and a negative Chaikin price trend ROC.
Expert Opinions – Neutral
Expert opinions about HIG are neutral. Analyst’s opinions on HIG have been more positive recently and short interest in HIG is high. The rank for HIG is based on analysts revising earnings estimates upward, a high short interest ratio, optimistic analyst opinions and price strength of the stock versus the Insurance industry group.