Lincoln National (LNC): Assessing Value After Return to Profitability and Revenue Growth in Q3

Lincoln National (LNC) reported a profitable third quarter, marking a turnaround from a net loss in the same period last year. The company's revenue also climbed, which could help strengthen investor confidence.

See our latest analysis for Lincoln National.

Lincoln National’s recent string of positive results appears to have reignited momentum, with its share price up 29% year-to-date. The 1-year total return clocks in at nearly 24%, suggesting that sentiment around the stock is looking brighter after last year’s struggles.

If strong rebounds are on your radar, now is a great time to broaden your investing horizons and discover fast growing stocks with high insider ownership

But with sentiment improving and the share price rising, the key question is whether Lincoln National is still trading at a discount or if the market is already anticipating further growth. This could leave little room for new buyers.

Most Popular Narrative: 6.6% Undervalued

Lincoln National’s most widely followed narrative places its fair value estimate at $44, a 6.6% premium to the last close of $41.08. The stage is set for further debate around whether the market is still underestimating the company’s turnaround potential and margin expansion story.

The ongoing digital modernization and investments in technology, from enhanced digital tools for customers/producers to automation in sales and claims, are expected to drive expense reductions and boost operational scalability. This, in turn, could improve net margins and support higher future earnings.

Read the complete narrative.

Curious what powers this narrative’s upside? The secret fuel is ambitious profit margin targets and bold digital reinvention bets that analysts think could re-rate Lincoln’s future. Want to see the specific projections that underpin this valuation? Don’t miss what’s behind the headline number.

Result: Fair Value of $44 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, particularly around legacy product volatility and revenue headwinds from client outflows. These factors could challenge Lincoln National’s ongoing turnaround.

Find out about the key risks to this Lincoln National narrative.

Build Your Own Lincoln National Narrative

If you have a different perspective or want to dive into the data firsthand, creating your own take on Lincoln National is quick and straightforward. Do it your way.

A great starting point for your Lincoln National research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Smart investors never stand still. Simply Wall Street’s top screeners can help you get ahead of the next market move. Miss these, and you might just miss your next big win in a fast-changing market.

• Tap into future trends by checking out these 27 AI penny stocks, filled with companies redefining industries through artificial intelligence innovation and next-gen automation.
• Secure reliable income by reviewing these 14 dividend stocks with yields > 3%, featuring stocks with strong yields and a proven track record of rewarding shareholders.
• Seize opportunities in value by selecting these 881 undervalued stocks based on cash flows and find companies trading below their intrinsic worth, ready for a potential price correction.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com