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Here's Why You Should Retain Voya Financial (VOYA) Stock
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Voya Financial, Inc. (VOYA - Free Report) has been benefiting from higher investment capital and improved premiums. A strong financial standing also reinforces growth prospects of the stock.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $6.19 and $6.69, indicating year-over-year increases of 28.6% and 8.1%, respectively.
Estimate Revision
The company has witnessed its current-year earnings estimate move 10.9% north over the past 60 days.
Earnings Surprise History
Voya surpassed estimates in two of the last four reported quarters and missed in the other two, with the average beat being 3.76%.
Zacks Rank & Price Performance
Voya currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 30.2%, outperforming the industry’s growth of 21.8%.
Image Source: Zacks Investment Research
Business Tailwinds
Voya continues to benefit on the back of improved premiums, which has resulted in top-line growth. Solid performance across its segments, Wealth Solutions and Investment Management are likely to drive revenues in the days ahead. This life-insurer remains focused on high-growth, high-return with capital-light businesses.
Wealth Solutions is driven by favorable alternative income as well as a favorable deferred acquisition costs (DAC) and other intangibles unlocking, organic growth and lower administrative expenses.
Banking on higher investment capital results, which are above the long-term target, Investment Management is likely to gain. It is expected to achieve 2% to 4% net flow organic growth target for 2021 on the back of strong, unfunded pipeline.
In May 2021, Voya inked a deal to buy Benefit Strategies, LLC. This transaction is expected to boost Voya’s workplace growth strategy and facilitate the expansion in health savings and spending accounts market. The deal will further enable Voya to harness its abilities in its Investment Management business, which currently manages invested assets in Voya’s health savings accounts.
Growth across all products, particularly in Voluntary business has been driving annualized in-force premiums in Health Solutions.
Moreover, Voya boasts a healthy balance sheet along with strong excess capital. It continues to expect at least $300 million of additional excess capital upon the completed sale of independent financial planning channel. It has a record of five consecutive years of positive net cash flows and it expects to deliver the sixth year of positive cash flows.
As of Mar 31, 2021, Voya’s estimated combined RBC ratio was 603%, well above the 400% target.
On the back of its financial strength, the board approved a quarterly cash dividend hike of 10% in January 2021. The company expects to repurchase $1 billion of shares in 2021.
The bottom line of Manulife Financial surpassed estimates in three of the last four quarters and missed in the other one, the average being 13.01%.
Cincinnati Financial surpassed estimates in three of the last four quarters and missed in the other one, the average earnings surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Here's Why You Should Retain Voya Financial (VOYA) Stock
Voya Financial, Inc. (VOYA - Free Report) has been benefiting from higher investment capital and improved premiums. A strong financial standing also reinforces growth prospects of the stock.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $6.19 and $6.69, indicating year-over-year increases of 28.6% and 8.1%, respectively.
Estimate Revision
The company has witnessed its current-year earnings estimate move 10.9% north over the past 60 days.
Earnings Surprise History
Voya surpassed estimates in two of the last four reported quarters and missed in the other two, with the average beat being 3.76%.
Zacks Rank & Price Performance
Voya currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 30.2%, outperforming the industry’s growth of 21.8%.
Business Tailwinds
Voya continues to benefit on the back of improved premiums, which has resulted in top-line growth. Solid performance across its segments, Wealth Solutions and Investment Management are likely to drive revenues in the days ahead. This life-insurer remains focused on high-growth, high-return with capital-light businesses.
Wealth Solutions is driven by favorable alternative income as well as a favorable deferred acquisition costs (DAC) and other intangibles unlocking, organic growth and lower administrative expenses.
Banking on higher investment capital results, which are above the long-term target, Investment Management is likely to gain. It is expected to achieve 2% to 4% net flow organic growth target for 2021 on the back of strong, unfunded pipeline.
In May 2021, Voya inked a deal to buy Benefit Strategies, LLC. This transaction is expected to boost Voya’s workplace growth strategy and facilitate the expansion in health savings and spending accounts market. The deal will further enable Voya to harness its abilities in its Investment Management business, which currently manages invested assets in Voya’s health savings accounts.
Growth across all products, particularly in Voluntary business has been driving annualized in-force premiums in Health Solutions.
Moreover, Voya boasts a healthy balance sheet along with strong excess capital. It continues to expect at least $300 million of additional excess capital upon the completed sale of independent financial planning channel. It has a record of five consecutive years of positive net cash flows and it expects to deliver the sixth year of positive cash flows.
As of Mar 31, 2021, Voya’s estimated combined RBC ratio was 603%, well above the 400% target.
On the back of its financial strength, the board approved a quarterly cash dividend hike of 10% in January 2021. The company expects to repurchase $1 billion of shares in 2021.
Stocks to Consider
Some better-ranked stocks in the insurance sector include Manulife Financial Corp (MFC - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and Alleghany Corporation , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Manulife Financial surpassed estimates in three of the last four quarters and missed in the other one, the average being 13.01%.
Cincinnati Financial surpassed estimates in three of the last four quarters and missed in the other one, the average earnings surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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