Is Loews Corporation Stock Outperforming the Dow?

Loews Corporation (L) stands as a diversified player with roots spread across insurance, energy, hospitality, and plastics. Its reach in the insurance segment is vast, offering both specialty and general products along with risk management and healthcare coverage across global markets.

Beyond financial protection, it oversees the transport of natural gas, operates a chain of 25 hotels, and manufactures plastics and resins. Headquartered in New York, the company carries a market capitalization of roughly $20.1 billion.

With that size, it sits squarely in the “large-cap” category, a tier reserved for companies valued at $10 billion or more. Loews’ positioning here underscores its nationwide insurance presence, its well-placed energy assets, and its firmly established hospitality chain, together reflecting an ability to compete across multiple industries at once.

On the trading floor, L stock has had its share of twists. The stock slipped 1.7% from its September peak of $98.33, but over the past three months it has delivered a 9.5% gain. That came close, though just shy, of the Dow Jones Industrial Average’s ($DOWI) 9.8% climb during the same stretch.

Looking at the longer horizon, the story turns even brighter. Over the past 52 weeks, L shares surged 22%, while in 2025 alone it climbed 14.2%. In comparison, the Dow Jones rose 10.2% across that 52-week span and 8.9% year-to-date (YTD), signaling L stock outpacing the benchmark with a clear margin.

Since May, the stock has consistently traded above its 50-day moving average and stayed above the 200-day moving average over the year with slight fluctuations. This steady rise shows strong investor confidence and signals a clear bullish momentum, suggesting the stock has solid support and the market believes in its upward trend.

The company’s second-quarter results added more weight to the story. On Aug. 4, L shares rose 2.8% after Loews posted Q2 2025 revenue of $4.6 billion which rose 6.7% year over year (YoY). EPS came in at $1.87, a 12% increase from the prior year’s period.

Yet, behind the numbers, clouds lingered. CNA Financial, its key subsidiary, reported higher-than-expected catastrophe losses that raised red flags around profitability and underwriting risks. Sentiment took another hit as insider selling surfaced, including transactions by directors such as Walter L. Harris and Charles M. Diker.

To place L’s climb in sharper relief, one need only look at its rival American Financial Group, Inc. (AFG). Over the past 52 weeks, AFG has managed a 3.4% gain and rose 3.2% YTD. However, these results pale beside Loews’ much stronger growth.

Yet, strength in recent performance has not silenced skepticism. Wall Street continues to tread cautiously, raising questions about Loews’ longer-term trajectory. Analysts point to elevated catastrophe losses as a key source of unease, weighing heavily on outlook despite near-term successes.

The consensus rating now sits at “Strong Sell,” and the mean price target of $217 signals a premium of 124.4% to current levels but also reflects lingering doubts.

On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com