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.
Here's Why You Should Hold on to Manulife Financial Stock
Read MoreHide Full Article
Manulife Financial Corporation (MFC - Free Report) remains well-poised for growth, banking on expanding wealth management business, sturdy Asia operations and a solid capital position. This Zacks Rank #3 (Hold) life insurer bears immense potential owing to a few good growth drivers.
Growth Projections: The Zacks Consensus Estimate for earnings per share is pegged at $1.75 for 2017 and at $1.97 for 2018. The consensus mark for 2017 reflects a year-over-year increase of 19.2% while the same for 2018 improved 12.4%.
The expected long-term earnings growth rate is pegged at 9.5%.
Estimate Revisions: The stock has seen the Zacks Consensus Estimate for current-year earnings being moved 1.1% south in the last 60 days. However, recent positive revisions have raised the 2018 earnings 3.1% over the same time frame.
Positive Earnings Surprise History: Manulife Financial has surpassed the Zacks Consensus Estimate in the last four quarters with an average beat of 10.75%.
Price Performance: Shares of Manulife Financial have gained 16.8% year to date, underperforming the industry’s 22.6% rally.
Underpriced: Looking at the company’s price-to-book ratio — the best multiple for valuing insurers because of large variations in their earnings results from one quarter to the next — shares are underpriced at the current level. The company has a trailing 12-month P/B ratio of 1.29, falling significantly below the industry average of 2.29. Undervalued shares with growth prospects are best investment bets. Manulife Financial carries a Value Score of A.
VGM Score: Manulife Financial carries a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
Growth Drivers in Place
Manulife is aggressively developing its Asia business and consistently expanding its wealth and asset management business across the globe.
Strategic acquisitions have helped Manulife add scale to its core business lines in Canada, including insurance, group benefits, group retirement and retail wealth besides accelerating growth in Asia as well as consolidating presence in the mid and large-case markets.
Manulife is also steadily widening its wealth and asset management business around the world. The company's investment division, Manulife Asset Management, announced its plan to expand operations in Europe. This investment wing already boasts a compelling presence in North America and in Asia as well.
A strong capital position aids the company to return value to shareholders through dividend hikes and pursue growth initiatives too. The company also has been effectively lowering its leverage ratio.
Philadelphia, PA-based Lincoln National is a diversified life insurance and investment management company. It pulled off a four-quarter average beat of 9.83%. Shares of the company have rallied 15.9% year to date.
Reinsurance Group is an insurance holding company primarily engaged in traditional individual and group life, asset-intensive, critical illness and financial reinsurance. This Timberlake, MO-based company delivered a four-quarter average positive surprise of 11.77%. Shares of the company have gained 23.1% year to date.
Torchmark in Birmingham, AL provides annuities, whole and term-life insurance, accidental death insurance, health insurance, Medicare supplements and long-term healthcare policies. The company came up with a four-quarter average positive surprise of 2.17%. Shares of the company have surged 22.2% year to date.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Here's Why You Should Hold on to Manulife Financial Stock
Manulife Financial Corporation (MFC - Free Report) remains well-poised for growth, banking on expanding wealth management business, sturdy Asia operations and a solid capital position. This Zacks Rank #3 (Hold) life insurer bears immense potential owing to a few good growth drivers.
Growth Projections: The Zacks Consensus Estimate for earnings per share is pegged at $1.75 for 2017 and at $1.97 for 2018. The consensus mark for 2017 reflects a year-over-year increase of 19.2% while the same for 2018 improved 12.4%.
The expected long-term earnings growth rate is pegged at 9.5%.
Estimate Revisions: The stock has seen the Zacks Consensus Estimate for current-year earnings being moved 1.1% south in the last 60 days. However, recent positive revisions have raised the 2018 earnings 3.1% over the same time frame.
Positive Earnings Surprise History: Manulife Financial has surpassed the Zacks Consensus Estimate in the last four quarters with an average beat of 10.75%.
Price Performance: Shares of Manulife Financial have gained 16.8% year to date, underperforming the industry’s 22.6% rally.
Underpriced: Looking at the company’s price-to-book ratio — the best multiple for valuing insurers because of large variations in their earnings results from one quarter to the next — shares are underpriced at the current level. The company has a trailing 12-month P/B ratio of 1.29, falling significantly below the industry average of 2.29. Undervalued shares with growth prospects are best investment bets. Manulife Financial carries a Value Score of A.
VGM Score: Manulife Financial carries a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
Growth Drivers in Place
Manulife is aggressively developing its Asia business and consistently expanding its wealth and asset management business across the globe.
Strategic acquisitions have helped Manulife add scale to its core business lines in Canada, including insurance, group benefits, group retirement and retail wealth besides accelerating growth in Asia as well as consolidating presence in the mid and large-case markets.
Manulife is also steadily widening its wealth and asset management business around the world. The company's investment division, Manulife Asset Management, announced its plan to expand operations in Europe. This investment wing already boasts a compelling presence in North America and in Asia as well.
A strong capital position aids the company to return value to shareholders through dividend hikes and pursue growth initiatives too. The company also has been effectively lowering its leverage ratio.
Stocks to Consider
Some better-ranked stocks from the life insurance industry are Lincoln National Corp. (LNC - Free Report) , Reinsurance Group of America Inc. (RGA - Free Report) and Torchmark Corporation , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Philadelphia, PA-based Lincoln National is a diversified life insurance and investment management company. It pulled off a four-quarter average beat of 9.83%. Shares of the company have rallied 15.9% year to date.
Reinsurance Group is an insurance holding company primarily engaged in traditional individual and group life, asset-intensive, critical illness and financial reinsurance. This Timberlake, MO-based company delivered a four-quarter average positive surprise of 11.77%. Shares of the company have gained 23.1% year to date.
Torchmark in Birmingham, AL provides annuities, whole and term-life insurance, accidental death insurance, health insurance, Medicare supplements and long-term healthcare policies. The company came up with a four-quarter average positive surprise of 2.17%. Shares of the company have surged 22.2% year to date.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>