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.
6 Reasons Why You Should Hold on to Sun Life (SLF) Stock
Read MoreHide Full Article
Sun Life Financial Inc. (SLF - Free Report) provides protection and wealth management products and services to individual and group customers worldwide. The Zacks Rank #3 (Hold) stock is the third largest insurer in Canada.
The stock’s Zacks Consensus Estimate for both current and next-year earnings has been revised a cent upward over the last 60 days. While the consensus mark for 2018 moved north by 7.6%, 2019 estimates moved up 5.3%. This reflects analysts’ confidence in the stock.
Moreover, shares the company have rallied 15.2% in a year, outperforming the industry’s growth of 3.7%.
Let’s focus on some factors that make Sun Life a stock worth holding on to for greater returns.
Intensifying Approach to Asia: Sun Life is focusing on economies that are expected to provide higher return and growth than the North American markets. As such the company has intensified its focus on Asia. Contribution to Sun Life’s earnings from Asian operations has increased to 14% from 8% over the last few years. The company has a strong presence in China, Philippines, India, Hong Kong and Indonesia, and has also forayed into Malaysia and Vietnam.
Expanding Global Asset Management Business: Sun Life is aggressively trying to grow its Global Asset Management Business, which has been witnessing a rise in asset base for the past many quarters. The company targets Sun Life Investment Management asset under management to the tune of $100 billion and 20% operating margin by 2020.
Prudent Capital Management: Riding on a solid capital position, the company increased its dividend thrice in 2017.The stock has a dividend yield of 3.7%, comparing favorably with the industry average of 2%. It targets dividend payout between 40% and 50%. The company also has a 11.5 million share buyback authorization.
Growth Projections: The Zacks Consensus Estimate for current-year earnings per share is pegged at $3.66 on revenues of $25.2 billion, representing year-over-year top-line and bottom-line improvement of 11.6% and 14.4%, respectively.
For 2019, the Zacks Consensus Estimate for earnings per share stands at $3.95 on revenues of $25.6 billion, representing a year-over-year increase of nearly 7.9% and 1.7%, respectively.
Sun Life has expected long-term earnings per share growth of 7%.
Earnings Surprise History: Sun Life has surpassed the Zacks Consensus Estimate in two of the last four quarters with an average beat of 2.98%.
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 1.62, falling below the industry average of 3.78. The stock also carries a Value Score of A
Stocks to Consider
Some better-ranked life insurance stocks are Health Insurance Innovations, Inc. , Primerica, Inc. (PRI - Free Report) , and American Equity Investment Life Holding Company (AEL - Free Report) .
Health Insurance Innovations operates as a cloud-based technology platform and distributor of individual and family health insurance plans and supplemental products in the United States. It pulled off a four-quarter average beat of 19.14%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Primerica distributes financial products to middle-income households in the United States and Canada. The company delivered an average four-quarter positive surprise of 3.74%. The stock carries Zacks Rank #2 (Buy).
American Equity Investment develops and sells fixed index and fixed rate annuity products in the United States. The company came up with an average four-quarter positive surprise of 27.23%. The stock carries Zacks Rank #2.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Image: Bigstock
6 Reasons Why You Should Hold on to Sun Life (SLF) Stock
Sun Life Financial Inc. (SLF - Free Report) provides protection and wealth management products and services to individual and group customers worldwide. The Zacks Rank #3 (Hold) stock is the third largest insurer in Canada.
The stock’s Zacks Consensus Estimate for both current and next-year earnings has been revised a cent upward over the last 60 days. While the consensus mark for 2018 moved north by 7.6%, 2019 estimates moved up 5.3%. This reflects analysts’ confidence in the stock.
Moreover, shares the company have rallied 15.2% in a year, outperforming the industry’s growth of 3.7%.
Let’s focus on some factors that make Sun Life a stock worth holding on to for greater returns.
Intensifying Approach to Asia: Sun Life is focusing on economies that are expected to provide higher return and growth than the North American markets. As such the company has intensified its focus on Asia. Contribution to Sun Life’s earnings from Asian operations has increased to 14% from 8% over the last few years. The company has a strong presence in China, Philippines, India, Hong Kong and Indonesia, and has also forayed into Malaysia and Vietnam.
Expanding Global Asset Management Business: Sun Life is aggressively trying to grow its Global Asset Management Business, which has been witnessing a rise in asset base for the past many quarters. The company targets Sun Life Investment Management asset under management to the tune of $100 billion and 20% operating margin by 2020.
Prudent Capital Management: Riding on a solid capital position, the company increased its dividend thrice in 2017.The stock has a dividend yield of 3.7%, comparing favorably with the industry average of 2%. It targets dividend payout between 40% and 50%. The company also has a 11.5 million share buyback authorization.
Growth Projections: The Zacks Consensus Estimate for current-year earnings per share is pegged at $3.66 on revenues of $25.2 billion, representing year-over-year top-line and bottom-line improvement of 11.6% and 14.4%, respectively.
For 2019, the Zacks Consensus Estimate for earnings per share stands at $3.95 on revenues of $25.6 billion, representing a year-over-year increase of nearly 7.9% and 1.7%, respectively.
Sun Life has expected long-term earnings per share growth of 7%.
Earnings Surprise History: Sun Life has surpassed the Zacks Consensus Estimate in two of the last four quarters with an average beat of 2.98%.
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 1.62, falling below the industry average of 3.78. The stock also carries a Value Score of A
Stocks to Consider
Some better-ranked life insurance stocks are Health Insurance Innovations, Inc. , Primerica, Inc. (PRI - Free Report) , and American Equity Investment Life Holding Company (AEL - Free Report) .
Health Insurance Innovations operates as a cloud-based technology platform and distributor of individual and family health insurance plans and supplemental products in the United States. It pulled off a four-quarter average beat of 19.14%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Primerica distributes financial products to middle-income households in the United States and Canada. The company delivered an average four-quarter positive surprise of 3.74%. The stock carries Zacks Rank #2 (Buy).
American Equity Investment develops and sells fixed index and fixed rate annuity products in the United States. The company came up with an average four-quarter positive surprise of 27.23%. The stock carries Zacks Rank #2.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>