We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Dec 19, 2016, we issued an updated research report on Manulife Financial Corporation (MFC - Free Report) .
Manulife Financial’s continues to improve its inorganic growth portfolio through prudent acquisitions. We expect such business moves to accelerate the company’s growth. As a result, the company will continue to witness improving results in the future.
Moreover, the company remains focused on developing its business in Asia, which is displaying solid operational performance. Notably, the Asia business now contributes one-third of the company’s earnings. Through the first nine months of 2016, the company witnessed core earnings growth in the region owing to substantial improvement in new business volumes. Manulife Financial is anticipated to maintain its hold over the Asian markets, which in turn, will drive the company’s long-term growth.
Further, the company continues to diversify its wealth and asset management business around the world. Assets Under Management (AUM) grew substantially in the first nine months of 2016, primarily driven by net inflows from customers and solid investment performance.
Shares of Manulife Financial gained 21.8%, outperforming the Zacks categorized Life Insurance industry’s growth of 0.03%. The aforementioned growth drivers were mainly responsible for the outperformance. Moreover, the Zacks Rank #3 (Hold) financial transaction service provider witnessed upward revision of its full-year 2016 estimates over the last 60 days.
The long-term expected earnings growth is pegged at 11.30%, which is better than the industry’s growth of 9.10%. Notably, Manulife Financial carries a VGM score of B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
In fact, valuation at the current level is attractive as the stock is trading at a forward P/E ratio of 13.3, a 5.7% discount to the industry average of 14.1. Further, Manulife Financial has a trailing 12-month return on equity (ROE) of 9.1%, which is higher than the industry average of 7%.
However, the company has been displaying weak results at its U.S. division for a considerable period of time. Given the intense competition and a continued low interest rate environment, earnings from this division are expected to remain under pressure in the near term.
Also, the currently volatile global equity markets coupled with low bond yields has been largely affecting the company’s capital position. Negatives like these might result in the underperformance of the stock.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Health Insurance Innovations, Inc. , Primerica, Inc. (PRI - Free Report) and Alleghany Corporation .
Health Insurance Innovations operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 270.84%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany Corporation deals with P&C reinsurance and insurance businesses in the U.S. and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 20.52%. The company sports a Zacks Rank #1.
Primerica distributes financial products to middle-income households in the U.S. and Canada. The company delivered positive surprises all of the last four quarters with an average beat of 6.37%. The company holds a Zacks Rank #2 (Buy).
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Manulife Financial Eyes Growth Despite Stiff Competition
On Dec 19, 2016, we issued an updated research report on Manulife Financial Corporation (MFC - Free Report) .
Manulife Financial’s continues to improve its inorganic growth portfolio through prudent acquisitions. We expect such business moves to accelerate the company’s growth. As a result, the company will continue to witness improving results in the future.
Moreover, the company remains focused on developing its business in Asia, which is displaying solid operational performance. Notably, the Asia business now contributes one-third of the company’s earnings. Through the first nine months of 2016, the company witnessed core earnings growth in the region owing to substantial improvement in new business volumes. Manulife Financial is anticipated to maintain its hold over the Asian markets, which in turn, will drive the company’s long-term growth.
Further, the company continues to diversify its wealth and asset management business around the world. Assets Under Management (AUM) grew substantially in the first nine months of 2016, primarily driven by net inflows from customers and solid investment performance.
Shares of Manulife Financial gained 21.8%, outperforming the Zacks categorized Life Insurance industry’s growth of 0.03%. The aforementioned growth drivers were mainly responsible for the outperformance. Moreover, the Zacks Rank #3 (Hold) financial transaction service provider witnessed upward revision of its full-year 2016 estimates over the last 60 days.
The long-term expected earnings growth is pegged at 11.30%, which is better than the industry’s growth of 9.10%. Notably, Manulife Financial carries a VGM score of B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
In fact, valuation at the current level is attractive as the stock is trading at a forward P/E ratio of 13.3, a 5.7% discount to the industry average of 14.1. Further, Manulife Financial has a trailing 12-month return on equity (ROE) of 9.1%, which is higher than the industry average of 7%.
However, the company has been displaying weak results at its U.S. division for a considerable period of time. Given the intense competition and a continued low interest rate environment, earnings from this division are expected to remain under pressure in the near term.
Also, the currently volatile global equity markets coupled with low bond yields has been largely affecting the company’s capital position. Negatives like these might result in the underperformance of the stock.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Health Insurance Innovations, Inc. , Primerica, Inc. (PRI - Free Report) and Alleghany Corporation .
Health Insurance Innovations operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 270.84%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany Corporation deals with P&C reinsurance and insurance businesses in the U.S. and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 20.52%. The company sports a Zacks Rank #1.
Primerica distributes financial products to middle-income households in the U.S. and Canada. The company delivered positive surprises all of the last four quarters with an average beat of 6.37%. The company holds a Zacks Rank #2 (Buy).
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>