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MetLife (MET) Up 14% in Past 6 Months: More Room to Run?
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Shares of MetLife, Inc. (MET - Free Report) have gained 14.3% in the past six months compared with the industry’s 9.4% increase. The Finance sector and the S&P 500 composite index have gained 3.4% and 0.2%, respectively, in the same time frame. With a market capitalization of $56.3 billion, the average volume of shares traded in the last three months was 4.1 million.
Image Source: Zacks Investment Research
Growing premiums, continuous product launches, cost-cutting efforts and strong cash reserves continue to drive MET.
MetLife, with a current Zacks Rank #3 (Hold), has a solid track record of beating estimates in each of the trailing seven quarters.
Can MET Retain the Momentum?
Premiums of MetLife continue to benefit on the back of a diversified insurance product suite. Its intensified focus on continuous product launches as well as the upgradation of existing ones through the addition of lucrative benefits is likely to boost premiums in the days ahead. Last month, MET introduced the Federal Legal plan, available across most U.S. states, for providing assistance to the members of the Federal Family in expected and unanticipated legal matters.
Growing premiums bode well for MetLife since it accounts for a significant chunk of an insurer’s top line.
MetLife resorts to an inorganic growth strategy through acquisitions and partnerships, which in turn, upgrades its capabilities and solidifies its nationwide presence.
Tactical cost-curbing initiatives undertaken by MET are expected to provide an impetus to its bottom line. The strength of such efforts keeps management optimistic about achieving a direct expense ratio remaining below the targeted figure of 12.3% for 2022. MetLife does not shy away from divesting underperforming businesses to intensify concentration on growing business units that fetches higher return. Divesting unprofitable businesses is likely to generate increased free cash flows for MET with which the insurer can continue its spree of growth-related efforts.
A strong financial position remains an added advantage for MetLife. The insurer boasts sufficient growing cash reserves to cover its meager short-term obligations. Backed by continued financial strength, MET can steadily pursue prudent capital deployment moves via share buybacks and dividend hikes. Its dividend yield of 2.8% remains higher than the industry’s figure of 2.3%.
The return on equity of MetLife stands at 13.6% as of Sep 30, 2022, ahead of the industry average of 8.4%. This denotes the insurer’s efficiency in utilizing shareholders’ funds.
Radian Group’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 45.10%. The Zacks Consensus Estimate for RDN’s 2022 earnings suggests an improvement of 49.5% from the year-ago reported figure.
The Zacks Consensus Estimate for RDN’s 2022 earnings has moved 12.7% north in the past 60 days. Shares of Radian Group have lost 4.2% in the past six months.
Reinsurance Group’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 49.74%. The Zacks Consensus Estimate for RGA’s 2022 earnings is pegged at $15.03 per share, which indicates an increase to more than 13-fold from the year-ago reported figure.
The Zacks Consensus Estimate for RGA’s 2022 earnings has moved 4.7% north in the past 30 days. Shares of Reinsurance Group have gained 19.8% in the past six months.
MGIC Investment’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 36.34%. The Zacks Consensus Estimate for MTG’s 2022 earnings indicates a rise of 49.7%, while the same for revenues suggests an improvement of 3.8% from the corresponding year-ago reported figures.
The Zacks Consensus Estimate for MTG’s 2022 earnings has moved 12.2% north in the past 60 days. Shares of MGIC Investment have gained 1.5% in the past six months.
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MetLife (MET) Up 14% in Past 6 Months: More Room to Run?
Shares of MetLife, Inc. (MET - Free Report) have gained 14.3% in the past six months compared with the industry’s 9.4% increase. The Finance sector and the S&P 500 composite index have gained 3.4% and 0.2%, respectively, in the same time frame. With a market capitalization of $56.3 billion, the average volume of shares traded in the last three months was 4.1 million.
Image Source: Zacks Investment Research
Growing premiums, continuous product launches, cost-cutting efforts and strong cash reserves continue to drive MET.
MetLife, with a current Zacks Rank #3 (Hold), has a solid track record of beating estimates in each of the trailing seven quarters.
Can MET Retain the Momentum?
Premiums of MetLife continue to benefit on the back of a diversified insurance product suite. Its intensified focus on continuous product launches as well as the upgradation of existing ones through the addition of lucrative benefits is likely to boost premiums in the days ahead. Last month, MET introduced the Federal Legal plan, available across most U.S. states, for providing assistance to the members of the Federal Family in expected and unanticipated legal matters.
Growing premiums bode well for MetLife since it accounts for a significant chunk of an insurer’s top line.
MetLife resorts to an inorganic growth strategy through acquisitions and partnerships, which in turn, upgrades its capabilities and solidifies its nationwide presence.
Tactical cost-curbing initiatives undertaken by MET are expected to provide an impetus to its bottom line. The strength of such efforts keeps management optimistic about achieving a direct expense ratio remaining below the targeted figure of 12.3% for 2022. MetLife does not shy away from divesting underperforming businesses to intensify concentration on growing business units that fetches higher return. Divesting unprofitable businesses is likely to generate increased free cash flows for MET with which the insurer can continue its spree of growth-related efforts.
A strong financial position remains an added advantage for MetLife. The insurer boasts sufficient growing cash reserves to cover its meager short-term obligations. Backed by continued financial strength, MET can steadily pursue prudent capital deployment moves via share buybacks and dividend hikes. Its dividend yield of 2.8% remains higher than the industry’s figure of 2.3%.
The return on equity of MetLife stands at 13.6% as of Sep 30, 2022, ahead of the industry average of 8.4%. This denotes the insurer’s efficiency in utilizing shareholders’ funds.
Stocks to Consider
Some better-ranked stocks in the insurance space are Radian Group Inc. (RDN - Free Report) , Reinsurance Group of America, Incorporated (RGA - Free Report) and MGIC Investment Corporation (MTG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radian Group’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 45.10%. The Zacks Consensus Estimate for RDN’s 2022 earnings suggests an improvement of 49.5% from the year-ago reported figure.
The Zacks Consensus Estimate for RDN’s 2022 earnings has moved 12.7% north in the past 60 days. Shares of Radian Group have lost 4.2% in the past six months.
Reinsurance Group’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 49.74%. The Zacks Consensus Estimate for RGA’s 2022 earnings is pegged at $15.03 per share, which indicates an increase to more than 13-fold from the year-ago reported figure.
The Zacks Consensus Estimate for RGA’s 2022 earnings has moved 4.7% north in the past 30 days. Shares of Reinsurance Group have gained 19.8% in the past six months.
MGIC Investment’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 36.34%. The Zacks Consensus Estimate for MTG’s 2022 earnings indicates a rise of 49.7%, while the same for revenues suggests an improvement of 3.8% from the corresponding year-ago reported figures.
The Zacks Consensus Estimate for MTG’s 2022 earnings has moved 12.2% north in the past 60 days. Shares of MGIC Investment have gained 1.5% in the past six months.