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Here's Why You Should Retain Sun Life Financial (SLF) Stock
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Sun Life Financial (SLF - Free Report) has been gaining momentum, given its solid Asia business, growing wealth and asset management business and strategic acquisitions.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $4.67 and $5.01, indicating a respective increase of 13.9% and 7.28% from the corresponding year-ago reported figures.
Earnings Surprise History
Sun Life has a decent earnings surprise history. Its bottom-line beat estimates in each of the last four quarters, the average being 13.56%.
Zacks Rank & Price Performance
Sun Life currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 45.5%, outperforming the industry’s increase of 30.4%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
The company’s ROE for the trailing 12 months is 14.1%, better than the industry average of 13.3%. This reflects its efficiency in utilizing its shareholders’ funds.
Business Tailwinds
Sun Life is well poised to gain from an expanding U.S. economy and growth in Asia, both fueled by compelling demographics as well as a strong momentum in Sun Life Canada.
Growth in expected profit, new business gains and favorable market impacts are likely to strengthen operations in Asia.
Being the third largest life insurer in Canada, this currently Zacks Rank #3 (Hold) life insurer continues to gain from favorable equity markets. Higher business growth, favorable credit and mortality experience plus greater investing gains are expected to drive the net income in Canada.
Strong gross sales at SLC management and higher wealth sales in Asia continue to benefit wealth sales and asset management business. The same ended the quarter with $1.3 trillion in assets under management.
Asia wealth sales are likely to gain from mutual fund sales in India, the pension business in Hong Kong and money market sales in the Philippines. The life insurer targets underlying earnings per share growth of 8-10% per annum over the medium term.
The insurer also witnessed strong individual insurance sales in Canada, Asia and Vietnam, banking on solid par sales and new bancassurance partnerships.
Sun Life considers acquisitions a prudent approach to ramp up its growth. In 2021, it bought the majority stake in Crescent Capital Group, the $28-billion worth credit manager. In 2020, it acquired an 80% stake in InfraRed Capital Partners. The buyout of InfraRed is expected to boost investment solutions of Sun Life's alternatives asset management business SLC Management for institutional clients to include infrastructure equity and advance sustainable investment options.
The insurer boasts a healthy capital and cash position, reflecting its financial flexibility and opportunities for capital deployment. Its financial leverage remains below the long-term target of 25% along with excess cash of $2.3 billion.
Sun Life envisions 40-50% dividend payout over the medium term.
The bottom line of HCI Group surpassed estimates in three of the last four quarters and missed the mark in the remaining one, the average beat being 42.91%.
Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters, missing the mark on a single occasion, the average surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
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Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Here's Why You Should Retain Sun Life Financial (SLF) Stock
Sun Life Financial (SLF - Free Report) has been gaining momentum, given its solid Asia business, growing wealth and asset management business and strategic acquisitions.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $4.67 and $5.01, indicating a respective increase of 13.9% and 7.28% from the corresponding year-ago reported figures.
Earnings Surprise History
Sun Life has a decent earnings surprise history. Its bottom-line beat estimates in each of the last four quarters, the average being 13.56%.
Zacks Rank & Price Performance
Sun Life currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 45.5%, outperforming the industry’s increase of 30.4%.
Return on Equity (ROE)
The company’s ROE for the trailing 12 months is 14.1%, better than the industry average of 13.3%. This reflects its efficiency in utilizing its shareholders’ funds.
Business Tailwinds
Sun Life is well poised to gain from an expanding U.S. economy and growth in Asia, both fueled by compelling demographics as well as a strong momentum in Sun Life Canada.
Growth in expected profit, new business gains and favorable market impacts are likely to strengthen operations in Asia.
Being the third largest life insurer in Canada, this currently Zacks Rank #3 (Hold) life insurer continues to gain from favorable equity markets. Higher business growth, favorable credit and mortality experience plus greater investing gains are expected to drive the net income in Canada.
Strong gross sales at SLC management and higher wealth sales in Asia continue to benefit wealth sales and asset management business. The same ended the quarter with $1.3 trillion in assets under management.
Asia wealth sales are likely to gain from mutual fund sales in India, the pension business in Hong Kong and money market sales in the Philippines.
The life insurer targets underlying earnings per share growth of 8-10% per annum over the medium term.
The insurer also witnessed strong individual insurance sales in Canada, Asia and Vietnam, banking on solid par sales and new bancassurance partnerships.
Sun Life considers acquisitions a prudent approach to ramp up its growth. In 2021, it bought the majority stake in Crescent Capital Group, the $28-billion worth credit manager. In 2020, it acquired an 80% stake in InfraRed Capital Partners. The buyout of InfraRed is expected to boost investment solutions of Sun Life's alternatives asset management business SLC Management for institutional clients to include infrastructure equity and advance sustainable investment options.
The insurer boasts a healthy capital and cash position, reflecting its financial flexibility and opportunities for capital deployment. Its financial leverage remains below the long-term target of 25% along with excess cash of $2.3 billion.
Sun Life envisions 40-50% dividend payout over the medium term.
Stocks to Consider
Some better-ranked stocks from the insurance sector are HCI Group, Inc. (HCI - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and Alleghany Corporation , 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.
The bottom line of HCI Group surpassed estimates in three of the last four quarters and missed the mark in the remaining one, the average beat being 42.91%.
Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters, missing the mark on a single occasion, the average surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>