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Voya Financial (VOYA) Gains From Solid Segmental Performance
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Voya Financial, Inc. (VOYA - Free Report) has been gaining momentum, given higher fee income, favorable equity markets, higher investment capital returns and effective capital deployment.
Earnings Surprise History
Voya Financial surpassed estimates in two of the last four reported quarters and missed in the other two, with the average beat being 16.6%.
Zacks Rank & Price Performance
Voya Financial currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 4.2% compared with the industry’s decline of 15.9%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Voya Financial’s trailing 12-month return on equity (ROE) was 8.5%, which expanded 220 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
Style Score
Voya Financial has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, the best growth and the most promising momentum.
Business Tailwinds
The Wealth Solutions segment of Voya Financial should continue to gain from higher fee income from business growth, favorable equity markets and net investment spread experience.
In 2021, full-service recurring deposits grew 9% year over year, above the target range of 6% to 8%. For 2022, the insurer expects to return to 10% to 12% growth in recurring deposits. Riding on higher employer and employee contributions in corporate markets, the growth momentum is expected to continue.
The Investment Management segment should gain from higher investment capital returns owing to overall market performance and higher fee revenue driven by higher average equity markets and positive net flows.
Voya Financial expects continued strength across the diversified investment strategies and distribution channels, which are likely to gain from fixed-income platform investment performance.
The Health Solutions segment is likely to gain from net revenue growth, stable operating margins, growth in Stop Loss and Voluntary as well as the contribution from recent benefit strategies acquisition. VOYA expects strong net revenue growth along with maintaining operating margins in the long run.
Capital Position
Voya Financial’s 90% to 100% free cash flow conversion has led to a high free cash flow yield, which currently stands at 13.2%, one of the highest in the industry. In 2021, the life insurer generated $1 billion of excess capital organically.
Solid Dividend History
A solid capital generation has enabled a record capital deployment of $1.7 billion in 2021. Capital deployment will continue to be a strong contributor to Voya Financial’s 12% to 17% annual EPS growth target.
Upbeat Guidance
Voya Financial unveiled its financial plan, wherein the insurer estimates annual adjusted operating earnings per share growth of about 12-17% through 2024.
The Zacks Consensus Estimate for Voya’s 2023 earnings per share is pegged at $7.77, indicating a year-over-year increase of 16.1%. The expected long-term earnings growth rate is pegged at 3.7%
The bottom line of Cincinnati Financial surpassed estimates in each of the last four quarters, the average being 38.48%. In the past year, the insurer has rallied 13.5%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 5.7% and 5.5% north, respectively, in the past 30 days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. In the past year, United Fire has declined 18.6%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 30 days.
Brighthouse Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 77.29%. In the past year, BHF has rallied 1.3%.
The Zacks Consensus Estimate for BHF’s 2022 and 2023 earnings has moved 3.9% and 3.1% north, respectively, in the past 60 days.
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Voya Financial (VOYA) Gains From Solid Segmental Performance
Voya Financial, Inc. (VOYA - Free Report) has been gaining momentum, given higher fee income, favorable equity markets, higher investment capital returns and effective capital deployment.
Earnings Surprise History
Voya Financial surpassed estimates in two of the last four reported quarters and missed in the other two, with the average beat being 16.6%.
Zacks Rank & Price Performance
Voya Financial currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 4.2% compared with the industry’s decline of 15.9%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Voya Financial’s trailing 12-month return on equity (ROE) was 8.5%, which expanded 220 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
Style Score
Voya Financial has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, the best growth and the most promising momentum.
Business Tailwinds
The Wealth Solutions segment of Voya Financial should continue to gain from higher fee income from business growth, favorable equity markets and net investment spread experience.
In 2021, full-service recurring deposits grew 9% year over year, above the target range of 6% to 8%. For 2022, the insurer expects to return to 10% to 12% growth in recurring deposits. Riding on higher employer and employee contributions in corporate markets, the growth momentum is expected to continue.
The Investment Management segment should gain from higher investment capital returns owing to overall market performance and higher fee revenue driven by higher average equity markets and positive net flows.
Voya Financial expects continued strength across the diversified investment strategies and distribution channels, which are likely to gain from fixed-income platform investment performance.
The Health Solutions segment is likely to gain from net revenue growth, stable operating margins, growth in Stop Loss and Voluntary as well as the contribution from recent benefit strategies acquisition. VOYA expects strong net revenue growth along with maintaining operating margins in the long run.
Capital Position
Voya Financial’s 90% to 100% free cash flow conversion has led to a high free cash flow yield, which currently stands at 13.2%, one of the highest in the industry. In 2021, the life insurer generated $1 billion of excess capital organically.
Solid Dividend History
A solid capital generation has enabled a record capital deployment of $1.7 billion in 2021. Capital deployment will continue to be a strong contributor to Voya Financial’s 12% to 17% annual EPS growth target.
Upbeat Guidance
Voya Financial unveiled its financial plan, wherein the insurer estimates annual adjusted operating earnings per share growth of about 12-17% through 2024.
The Zacks Consensus Estimate for Voya’s 2023 earnings per share is pegged at $7.77, indicating a year-over-year increase of 16.1%. The expected long-term earnings growth rate is pegged at 3.7%
Stocks to Consider
Some better-ranked insurers are Cincinnati Financial (CINF - Free Report) , United Fire Group (UFCS - Free Report) and Brighthouse Financial (BHF - Free Report) . While Cincinnati Financial and United Fire Group sport a Zacks Rank #1 (Strong Buy), Brighthouse Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Cincinnati Financial surpassed estimates in each of the last four quarters, the average being 38.48%. In the past year, the insurer has rallied 13.5%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 5.7% and 5.5% north, respectively, in the past 30 days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. In the past year, United Fire has declined 18.6%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 30 days.
Brighthouse Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 77.29%. In the past year, BHF has rallied 1.3%.
The Zacks Consensus Estimate for BHF’s 2022 and 2023 earnings has moved 3.9% and 3.1% north, respectively, in the past 60 days.