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The following is a list of financial sector stocks that have conservative accounting practices, according to the ratings developed by forensic accounting firm Audit Integrity.

Audit Integrity was founded in 2002 to develop risk management tools based on a statistical analysis of corporate integrity. The Accounting and Governance Risk (AGR) rating is a forensic measure of the transparency and reliability of a corporation’s financial reporting and governance practices. The closer the score is to 100, the more conservative the company's accounting practices, according to Audit Integrity.

All the companies in this list have high AGR scores above 70, i.e. more conservative and transparent accounting practices than most other firms.

Short float values sourced from Finviz, AGR ratings sourced from Audit Integrity.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the AGR score.

1. Cincinnati Financial Corp. (NASDAQ:CINF): Property & Casualty Insurance Industry. Market cap of $5.27B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 100. Short float at 10.11%, which implies a short ratio of 14.55 days. The stock has gained 29.33% over the last year.

2. Unum Group (NYSE:UNM): Accident & Health Insurance Industry. Market cap of $8.13B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 97. Short float at 1.91%, which implies a short ratio of 2.73 days. The stock has gained 29.25% over the last year.

3. Hudson City Bancorp, Inc. (NASDAQ:HCBK): Savings & Loans Industry. Market cap of $5.79B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 90. Short float at 2.4%, which implies a short ratio of 1.96 days. The stock has lost -13.12% over the last year.

4. Progressive Corp. (NYSE:PGR): Property & Casualty Insurance Industry. Market cap of $13.26B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 88. Short float at 2.37%, which implies a short ratio of 2.72 days. The stock has gained 20.28% over the last year.

5. Avalonbay Communities Inc. (NYSE:AVB): REIT. Market cap of $9.85B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 86. Short float at 7.84%, which implies a short ratio of 9.7 days. The stock has gained 54.78% over the last year.

6. Sun Life Financial Inc. (NYSE:SLF): Life Insurance Industry. Market cap of $17.99B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 83. Short float at 0.37%, which implies a short ratio of 5.23 days. The stock has gained 11.49% over the last year.

7. CNA Financial Corporation (NYSE:CNA): Property & Casualty Insurance Industry. Market cap of $7.33B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 76. Short float at 0.38%, which implies a short ratio of 4.94 days. The stock has gained 16.03% over the last year.

8. The Blackstone Group (NYSE:BX): Asset Management Industry. Market cap of $19.45B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 73. Short float at 0.28%, which implies a short ratio of 0.95 days. The stock has gained 29.8% over the last year.

9. Vornado Realty Trust (NYSE:VNO): Property Management Industry. Market cap of $15.91B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 73. Short float at 3.41%, which implies a short ratio of 4.75 days. The stock has gained 36.92% over the last year.

10. Weyerhaeuser Co. (NYSE:WY): REIT. Market cap of $12.24B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 72. Short float at 3.94%, which implies a short ratio of 3.88 days. The stock has gained 50.89% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Top 10 Financial Stocks With Conservative Accounting Practices