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Reasons Why You Should Retain Voya Financial (VOYA) Stock
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Voya Financial, Inc. (VOYA - Free Report) has been benefiting from higher fee income from business growth, higher investment capital returns as well as growth in Stop Loss and Voluntary blocks of business.
Earnings Surprise History
Voya Financial surpassed estimates in thee of the last four reported quarters and missed in one, with the average beat being 19.78%.
Zacks Rank & Price Performance
Voya Financial currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 0.7% compared with the industry’s decline of 16.7%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Voya Financial’s trailing 12-month return on equity (ROE) was 9.2%, which expanded 320 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
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.
The Investment Management segment should gain from higher investment capital returns owing to overall market performance and higher fee revenues, driven by higher average equity markets and positive net flows.
Voya Financial expects continued strength across 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.
Voya Financial expects to achieve double-digit adjusted operating EPS growth in 2022.
Voya Financial has been taking strategic steps to ramp up growth in its Investment Management segment. In June 2022, Voya Financial and Allianz Global Investors entered into an agreement wherein Allianz will transfer its U.S. business to Voya Investment Management. The transaction is a strategic fit as AllianzGI would make Voya IM’s investment strategies available outside the United States, leveraging its international presence through a long-term strategic partnership. Banking on this transaction, Voya IM’s non-US client base is expected to grow to 27% from 9%.
In January 2022, Investment Management bought Tygh Capital Management to ensure Voya’s continued investment in its equity capabilities.
Voya Financial ended the first quarter with $900 million in excess capital. VOYA continues to benefit from high free cash flow businesses.
In the first quarter of 2022, Voya deployed $700 million of excess capital for $500 million worth of share buyback, $200 million for debt extinguishment and $20 million for common stock dividends. Voya expects to deploy about $60 million of additional capital for investment management over the remainder of 2022.
Stocks to Consider
Some better-ranked stocks in the insurance industry are HCI Group, Inc. (HCI - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Brighthouse Financial, Inc. (BHF - Free Report) . While HCI Group and American Financial 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 Zacks Consensus Estimate for HCI Group’s 2022 and 2023 earnings has moved 33.3% and 40% north, respectively, in the past 60 days. In the past year, HCI Group’s stock has lost 33.9%.
The Zacks Consensus Estimate for HCI’s 2022 and 2023 earnings per share indicates a year-over-year increase of 280.9% and 75%, respectively.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has gained 10.8%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 60 days.
Brighthouse Financial’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 55.91%. In the past year, BHF's stock has lost 6.5%.
The Zacks Consensus Estimate for BHF’s 2022 and 2023 earnings has moved 4.3% and 0.6% north, respectively, in the past 30 days.
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Reasons Why You Should Retain Voya Financial (VOYA) Stock
Voya Financial, Inc. (VOYA - Free Report) has been benefiting from higher fee income from business growth, higher investment capital returns as well as growth in Stop Loss and Voluntary blocks of business.
Earnings Surprise History
Voya Financial surpassed estimates in thee of the last four reported quarters and missed in one, with the average beat being 19.78%.
Zacks Rank & Price Performance
Voya Financial currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 0.7% compared with the industry’s decline of 16.7%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Voya Financial’s trailing 12-month return on equity (ROE) was 9.2%, which expanded 320 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
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.
The Investment Management segment should gain from higher investment capital returns owing to overall market performance and higher fee revenues, driven by higher average equity markets and positive net flows.
Voya Financial expects continued strength across 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.
Voya Financial expects to achieve double-digit adjusted operating EPS growth in 2022.
Voya Financial has been taking strategic steps to ramp up growth in its Investment Management segment. In June 2022, Voya Financial and Allianz Global Investors entered into an agreement wherein Allianz will transfer its U.S. business to Voya Investment Management. The transaction is a strategic fit as AllianzGI would make Voya IM’s investment strategies available outside the United States, leveraging its international presence through a long-term strategic partnership. Banking on this transaction, Voya IM’s non-US client base is expected to grow to 27% from 9%.
In January 2022, Investment Management bought Tygh Capital Management to ensure Voya’s continued investment in its equity capabilities.
Voya Financial ended the first quarter with $900 million in excess capital. VOYA continues to benefit from high free cash flow businesses.
In the first quarter of 2022, Voya deployed $700 million of excess capital for $500 million worth of share buyback, $200 million for debt extinguishment and $20 million for common stock dividends. Voya expects to deploy about $60 million of additional capital for investment management over the remainder of 2022.
Stocks to Consider
Some better-ranked stocks in the insurance industry are HCI Group, Inc. (HCI - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Brighthouse Financial, Inc. (BHF - Free Report) . While HCI Group and American Financial 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 Zacks Consensus Estimate for HCI Group’s 2022 and 2023 earnings has moved 33.3% and 40% north, respectively, in the past 60 days. In the past year, HCI Group’s stock has lost 33.9%.
The Zacks Consensus Estimate for HCI’s 2022 and 2023 earnings per share indicates a year-over-year increase of 280.9% and 75%, respectively.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has gained 10.8%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 60 days.
Brighthouse Financial’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 55.91%. In the past year, BHF's stock has lost 6.5%.
The Zacks Consensus Estimate for BHF’s 2022 and 2023 earnings has moved 4.3% and 0.6% north, respectively, in the past 30 days.