5 Undervalued Insurance Stocks to Buy Now

2. Lincoln National Corporation (NYSE:LNC)

Number of Hedge Fund holders: 39

Lincoln National Corporation (NYSE:LNC) is a holding company that operates asset management and insurance firms through its subsidiaries. At the time of market opening on December 13, the company was trading near its 52-week low of $30.80 at $33.49. The company took a battering this year due to disappointing results and now has a PE ratio of around 10x.

According to our database, hedge funds are optimistic about Lincoln National Corporation (NYSE:LNC) as 39 hedge funds held positions in the company in Q3, up from 34 in the previous quarter. Lyrical Asset Management owned over 3,556,967 of the company shares, valued at $156.186 million, making it the most prominent shareholder in Lincoln National Corporation (NYSE:LNC).

On November 16, Goldman Sachs analyst Alex Scott upgraded Lincoln National Corporation (NYSE:LNC) from Neutral to Buy and lowered the firm’s price target to $46 from $50. Scott believes that the company will be able to rebuild its capital base. Moreover, the company is expected to return to more solid cash flow levels by 2024.

Here is what Chartwell Investment Partners had to say about Lincoln National Corporation (NYSE:LNC) in its Q2 2022 investor letter:

“The three worst-performing stocks in the Dividend Equity accounts includes Lincoln National (NYSE:LNC, 1.9%), down 27.9%. Lincoln’s quarterly results were weak in both life insurance and annuity sales, but we remain positive on the stock given the company’s ongoing de-risking initiatives, leverage to higher rates, and discounted valuation.”