Hartford Financial Stock Can Deliver 30% Growth

Hartford Financial Stock Can Deliver 30% Growth

KIEV, UKRAINE - 2018/12/18: In this photo illustration, the Hartford Financial services company ... [+] logo seen displayed on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)



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[Updated 12/16/2020] Hartford Financial Update

We believe that Hartford Financial stock (NYSE: HIG) has an upside potential of 28% in 1-1.5 years once the negative GDP scenario improves and the investment yields see some recovery. HIG trades at $46 currently and is 22% ahead of its pre-Covid high of February. Also, HIG stock has gained 48% from the March 2020 lows, after the multi-billion dollar stimulus package announced by the U.S. government, which has helped the stock market recover to a large extent. The stock is lagging the broader markets (S&P 500 is up about 65% since the March bottom), as investors are cautious about the impact of lower investment yields on its net investment income.

Hartford Financial recently released its third-quarter results, outperforming the consensus earnings estimates. It reported total revenues of $5.17 billion – 3% lower than the year-ago period, driven by a drop in net realized capital gains and a slight decline in total premiums. The company