Barron's Says Loews (L) Looks "Very Cheap"

This weekend's Barron's said Loews (NYSE: L) is trading at a "sizable discount to its asset value."

Barron's noted that several of Loews investments in public companies have fallen, and thus Loews now trades at about 39% below estimated asset value of $34 a share, which is a much steeper discount than the 20% average over the past two years. Loews has large positions in CNA (NYSE: CNA) and Diamond Offshore (NYSE: DO) and if those stocks return, Loews' will likely spike as well.

Loews could rise to the high 20s or even lows 30s in the next year, if its discount to asset value returns to the 20% level.

Barron's noted that there is very little downside in Loews stock as the combined of the three public companies Loews has investments in totals Loews market capitalization. Thus, you'd be actually be picking up Loews assets (Loews Hotels and Highmount Exploration & Production) for free.

Barron's says Loews is trading well below the value of assets and if financial markets ever stabilize, Loews could rise as much 40%.

Loews Corporation is a holding company.

You May Also Be Interested In

• Interactive Brokers adds access to the Bucharest Stock Exchange
• NeOnc Phase 2a brain cancer trial shows 48.9% survival vs. 20% benchmark
• SEI partners with Zocks to add AI assistant to advisor ecosystem