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 Manulife Financial (MFC) Stock is an Attractive Bet
Read MoreHide Full Article
Manulife Financial Corporation (MFC - Free Report) has been gaining momentum on the back of higher average assets under management and administration, higher sales volumes and product repricing.
Growth Projections
The Zacks Consensus Estimate for Manulife Financial’s 2022 and 2023 earnings per share is pegged at $2.80 and $2.91, respectively, indicating a year-over-year increase of 8.1% and 4.1%. The expected long-term earnings growth rate is pegged at 10%.
Earnings Surprise History
Manulife Financial has a solid track record of beating earnings estimates in five of the last six quarters.
Zacks Rank & Price Performance
Manulife Financial currently carries a Zacks Rank #2 (Buy). Year to date, the stock has rallied 12% against the industry’s decline of 2%.
Image Source: Zacks Investment Research
Style Score
Manulife Financial has a favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Return on Equity (ROE)
Manulife Financial’s trailing 12-month return on equity (ROE) was 13.3%, which expanded 230 basis points year over year. ROE reflects its efficiency in using shareholders’ funds.
Business Tailwinds
The life insurer stands to gain from three of its highest potential operating division, Asia, Canada and Global Wealth and Asset Management (“WAM”).
Riding on higher sales volumes, favorable product mix in individual insurance in Canada and the favorable impact of product repricing in Hong Kong, new business gains are expected be higher.
Higher new business gains along with solid net fee income from higher average assets under management and administration in the Global Wealth and Asset Management business, higher investment income and double-digit in-force business growth in Canada and Asia are likely to benefit the core earnings of Manulife Financial.
MFC witnessed double-digit growth in new business value (NBV) in 2021 across Asia, Canada and the U.S. segment. Higher sales volumes, favorable interest rates as well as a favorable product mix, higher margins in annuities and international business are expected to drive NBV.
In the fourth quarter of 2021, MFC inked a 16-year exclusive bancassurance partnership with VietinBank that is likely to enhance the insurer’s distribution capability in Vietnam with its wide range of insurance, wealth, and retirement solutions. MFC also acquired Aviva Vietnam to further enhance its scale in Vietnam's fast-growing market.
Manulife remains focused on driving efficient growth, ensuring scalable growth, offering outstanding customer experience as well as digital ways of working.
The life insurer boasts financial flexibility by virtue of solid growth in new business value, robust annualized premium equivalent sales growth and solid balance sheet. Its balance sheet remained strong as evident from the LICAT and leverage ratios, which provide sufficient liquidity to deliver on strategic and capital deployment priorities.
Solid Capital Deployment
Banking on operational excellence, the life insurer has increased its dividend at an eight-year (2015-2022) CAGR of 7.1%. Its current dividend yield of 4.9% is higher than the industry average of 3.9%. MFC resumed share repurchases under the recently launched Normal Course Issuer Bid (NCIB) program in the first quarter of 2022.
Other Stocks to Consider
Some other top-ranked stocks from the insurance industry are Kinsale Capital Group, Inc. (KNSL - Free Report) , United Fire Group, Inc. (UFCS - Free Report) and Sun Life Financial, Inc. (SLF - Free Report) . While Kinsale Capital and United Fire Group sport a Zacks Rank #1 (Strong Buy), Sun Life Financial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. Year to date, Kinsale Capital has declined 1.1%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings has moved 5.9% and 8.2% north, respectively, in the past 60 days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. Year to date, UFCS stock has rallied 27.3%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 60 days.
Sun Life Financial has a solid track record of beating earnings estimates in five of the last six quarters. Year to date, Sun Life Financial has declined 0.6%.
The Zacks Consensus Estimate for 2022 and 2023 earnings per share is pegged at $5.03 and $5.65, respectively, indicating a year-over-year increase of 4.6% and 12.5%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Manulife Financial (MFC) Stock is an Attractive Bet
Manulife Financial Corporation (MFC - Free Report) has been gaining momentum on the back of higher average assets under management and administration, higher sales volumes and product repricing.
Growth Projections
The Zacks Consensus Estimate for Manulife Financial’s 2022 and 2023 earnings per share is pegged at $2.80 and $2.91, respectively, indicating a year-over-year increase of 8.1% and 4.1%. The expected long-term earnings growth rate is pegged at 10%.
Earnings Surprise History
Manulife Financial has a solid track record of beating earnings estimates in five of the last six quarters.
Zacks Rank & Price Performance
Manulife Financial currently carries a Zacks Rank #2 (Buy). Year to date, the stock has rallied 12% against the industry’s decline of 2%.
Image Source: Zacks Investment Research
Style Score
Manulife Financial has a favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Return on Equity (ROE)
Manulife Financial’s trailing 12-month return on equity (ROE) was 13.3%, which expanded 230 basis points year over year. ROE reflects its efficiency in using shareholders’ funds.
Business Tailwinds
The life insurer stands to gain from three of its highest potential operating division, Asia, Canada and Global Wealth and Asset Management (“WAM”).
Riding on higher sales volumes, favorable product mix in individual insurance in Canada and the favorable impact of product repricing in Hong Kong, new business gains are expected be higher.
Higher new business gains along with solid net fee income from higher average assets under management and administration in the Global Wealth and Asset Management business, higher investment income and double-digit in-force business growth in Canada and Asia are likely to benefit the core earnings of Manulife Financial.
MFC witnessed double-digit growth in new business value (NBV) in 2021 across Asia, Canada and the U.S. segment. Higher sales volumes, favorable interest rates as well as a favorable product mix, higher margins in annuities and international business are expected to drive NBV.
In the fourth quarter of 2021, MFC inked a 16-year exclusive bancassurance partnership with VietinBank that is likely to enhance the insurer’s distribution capability in Vietnam with its wide range of insurance, wealth, and retirement solutions. MFC also acquired Aviva Vietnam to further enhance its scale in Vietnam's fast-growing market.
Manulife remains focused on driving efficient growth, ensuring scalable growth, offering outstanding customer experience as well as digital ways of working.
The life insurer boasts financial flexibility by virtue of solid growth in new business value, robust annualized premium equivalent sales growth and solid balance sheet. Its balance sheet remained strong as evident from the LICAT and leverage ratios, which provide sufficient liquidity to deliver on strategic and capital deployment priorities.
Solid Capital Deployment
Banking on operational excellence, the life insurer has increased its dividend at an eight-year (2015-2022) CAGR of 7.1%. Its current dividend yield of 4.9% is higher than the industry average of 3.9%. MFC resumed share repurchases under the recently launched Normal Course Issuer Bid (NCIB) program in the first quarter of 2022.
Other Stocks to Consider
Some other top-ranked stocks from the insurance industry are Kinsale Capital Group, Inc. (KNSL - Free Report) , United Fire Group, Inc. (UFCS - Free Report) and Sun Life Financial, Inc. (SLF - Free Report) . While Kinsale Capital and United Fire Group sport a Zacks Rank #1 (Strong Buy), Sun Life Financial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. Year to date, Kinsale Capital has declined 1.1%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings has moved 5.9% and 8.2% north, respectively, in the past 60 days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. Year to date, UFCS stock has rallied 27.3%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 60 days.
Sun Life Financial has a solid track record of beating earnings estimates in five of the last six quarters. Year to date, Sun Life Financial has declined 0.6%.
The Zacks Consensus Estimate for 2022 and 2023 earnings per share is pegged at $5.03 and $5.65, respectively, indicating a year-over-year increase of 4.6% and 12.5%, respectively.