Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Insurance Stocks with Open Questions

JXN Cover Image

Insurance companies serve as the backbone of risk management, providing essential protection and financial security for individuals and businesses. But worries about an economic slowdown and potential claims deterioration have kept sentiment in check, and over the past six months, the industry’s 6.8% return has trailed the S&P 500 by 15.9 percentage points.

Investors should tread carefully as many of these insurers are also cyclical, and any misstep can have you catching a falling knife. Taking that into account, here are three insurance stocks we’re steering clear of.

Jackson Financial (JXN)

Market Cap: $7.03 billion

Spun off from British insurer Prudential plc in 2021 after more than 60 years as its U.S. subsidiary, Jackson Financial (NYSE: JXN) offers annuity products and retirement solutions that help Americans grow and protect their retirement savings and income.

Why Does JXN Fall Short?

  1. Net premiums earned expanded by 2.8% annually over the last two years, falling below our expectations for the insurance sector
  2. Expenses have increased as a percentage of revenue over the last four years as its pre-tax profit margin fell by 33.9 percentage points
  3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

At $100.81 per share, Jackson Financial trades at 0.6x forward P/B. Read our free research report to see why you should think twice about including JXN in your portfolio.

First American Financial (FAF)

Market Cap: $6.19 billion

Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.

Why Do We Avoid FAF?

  1. Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last two years
  2. Day-to-day expenses have swelled relative to revenue over the last four years as its pre-tax profit margin fell by 12.1 percentage points
  3. Flat earnings per share over the last five years lagged its peers

First American Financial’s stock price of $60 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why FAF doesn’t pass our bar.

Cincinnati Financial (CINF)

Market Cap: $25.89 billion

Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.

Why Does CINF Give Us Pause?

  1. Sizable revenue base leads to growth challenges as its 6.8% annual revenue increases over the last five years fell short of other insurance companies
  2. Day-to-day expenses have swelled relative to revenue over the last four years as its combined ratio increased by 8.4 percentage points
  3. Estimated book value per share growth of 6.4% for the next 12 months implies profitability will slow from its two-year trend

Cincinnati Financial is trading at $164.77 per share, or 1.8x forward P/B. Dive into our free research report to see why there are better opportunities than CINF.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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