Over the past six months, CNO Financial Group has been a great trade, beating the S&P 500 by 11.4%. Its stock price has climbed to $52.99, representing a healthy 24.2% increase. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
Is now the time to buy CNO Financial Group, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Do We Think CNO Financial Group Will Underperform?
We’re happy investors have made money, but we’re passing on CNO Financial Group for now. Here are three reasons you should be careful with CNO, plus one stock we’d rather own.
1. Net Premiums Earned Point to Soft Demand
Insurers sell policies then use reinsurance (insurance for insurance companies) to protect themselves from large losses. Net premiums earned are therefore what's collected from selling policies less what’s paid to reinsurers as a risk mitigation tool.
CNO Financial Group’s net premiums earned has grown at a 1.2% annualized rate over the last five years, much worse than the broader insurance industry and in line with its total revenue.
2. Substandard BVPS Growth Indicates Limited Asset Expansion
In the insurance industry, book value per share (BVPS) provides a clear picture of shareholder value, as it represents the total equity backing a company’s insurance operations and growth initiatives.
To the detriment of investors, CNO Financial Group’s BVPS grew at a mediocre 10.7% annual clip over the last two years.
Final Judgment
We see the value of companies helping consumers, but in the case of CNO Financial Group, we’re out. With its shares topping the market in recent months, the stock trades at 1.8× forward P/B (or $52.99 per share). At this valuation, there’s a lot of good news priced in - we think there are better stocks to buy right now. Let us point you toward an all-weather company that owns household favorite Taco Bell.
Stocks We Like More Than CNO Financial Group
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
