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 You Should Hold Sun Life (SLF) Stock for Now
Read MoreHide Full Article
Sun Life Financial (SLF - Free Report) is well-poised for growth on focus on Asia operation, growing asset management businesses and strong financial position. These factors make SLF stock worth retaining in one’s portfolio.
Sun Life has a decent track record of beating the Zacks Consensus Estimate for earnings in the last four quarters.
Zacks Rank & Price Performance
Sun Life currently caries a Zacks Rank #3 (Hold). In the past six months, the stock has gained 6.7% compared with the industry’s increase of 9.8%.
Image Source: Zacks Investment Research
Northbound Estimate Revision
The Zacks Consensus Estimate for Sun Life’s 2023 and 2024 earnings has moved up 1.5% and 1.3%, respectively, in the past 30 days, reflecting analysts’ optimism.
Optimistic Growth Projections
The Zacks Consensus Estimate for Sun Life’s 2024 earnings is pegged at $5.27 per share, suggesting growth of 11.6% year over year. The expected long-term earnings growth rate is pegged at 9%.
Business Tailwinds
Sun Life stays focused on continually strengthening its presence in China, Philippines, India, Hong Kong, Indonesia, Malaysia and Vietnam. The Asian market provides higher return and growth than the North American markets.
The life insurer is improving its business mix and thus shifting its growth focus toward products that park lower capital and offer more predictable earnings, such as mutual funds and group benefits. Eyeing a place among the top five players, the company is also growing its voluntary benefits business.
The company intends to invest an additional $20 billion over a span of five years across its general account and third-party investments. This is in addition to the $60 billion of existing sustainable investments.
Sun Life Investment Management fosters its investment capabilities in private fixed income, mortgages and real estate by investing into pension plans and other institutional investors. This development further strengthens the company’s Asset Management pillar, which provides higher return on equity, lower capital and lower volatility and has potential for an earnings upside.
Sun Life is looking to make an investment in the private credit domain, which ensures a greater yield, thus creating an opportunity to generate higher income.
Sun Life boasts a strong capital position. It targets a leverage ratio of 25% over the long term and a 30-40% dividend payout over the medium term. Given the company’s ongoing shift to fee-based capital-light businesses, it reiterates medium-term ROE objectives of 18% from 16% guided earnings.
Voya Financial’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 38.68%. In the past six months, VOYA has gained 20.3%.
The Zacks Consensus Estimate for VOYA’s 2023 and 2024 earnings per share indicates year-over-year increases of 6.1% and 14%, respectively.
Brighthouse Financial’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 2.07%. In the past six months, BHF has gained 20.6%.
The Zacks Consensus Estimate for BHF’s 2023 and 2024 earnings per share indicates year-over-year increases of 29.4% and 12.6%, respectively.
Primerica’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters. In the past six months, PRI has gained 51.6%.
The Zacks Consensus Estimate for PRI’s 2023 and 2024 earnings per share indicates year-over-year increases of 18.3% and 8.9%, respectively.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Hold Sun Life (SLF) Stock for Now
Sun Life Financial (SLF - Free Report) is well-poised for growth on focus on Asia operation, growing asset management businesses and strong financial position. These factors make SLF stock worth retaining in one’s portfolio.
Sun Life has a decent track record of beating the Zacks Consensus Estimate for earnings in the last four quarters.
Zacks Rank & Price Performance
Sun Life currently caries a Zacks Rank #3 (Hold). In the past six months, the stock has gained 6.7% compared with the industry’s increase of 9.8%.
Image Source: Zacks Investment Research
Northbound Estimate Revision
The Zacks Consensus Estimate for Sun Life’s 2023 and 2024 earnings has moved up 1.5% and 1.3%, respectively, in the past 30 days, reflecting analysts’ optimism.
Optimistic Growth Projections
The Zacks Consensus Estimate for Sun Life’s 2024 earnings is pegged at $5.27 per share, suggesting growth of 11.6% year over year. The expected long-term earnings growth rate is pegged at 9%.
Business Tailwinds
Sun Life stays focused on continually strengthening its presence in China, Philippines, India, Hong Kong, Indonesia, Malaysia and Vietnam. The Asian market provides higher return and growth than the North American markets.
The life insurer is improving its business mix and thus shifting its growth focus toward products that park lower capital and offer more predictable earnings, such as mutual funds and group benefits. Eyeing a place among the top five players, the company is also growing its voluntary benefits business.
The company intends to invest an additional $20 billion over a span of five years across its general account and third-party investments. This is in addition to the $60 billion of existing sustainable investments.
Sun Life Investment Management fosters its investment capabilities in private fixed income, mortgages and real estate by investing into pension plans and other institutional investors. This development further strengthens the company’s Asset Management pillar, which provides higher return on equity, lower capital and lower volatility and has potential for an earnings upside.
Sun Life is looking to make an investment in the private credit domain, which ensures a greater yield, thus creating an opportunity to generate higher income.
Sun Life boasts a strong capital position. It targets a leverage ratio of 25% over the long term and a 30-40% dividend payout over the medium term. Given the company’s ongoing shift to fee-based capital-light businesses, it reiterates medium-term ROE objectives of 18% from 16% guided earnings.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Voya Financial (VOYA - Free Report) , Brighthouse Financial (BHF - Free Report) and Primerica (PRI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Voya Financial’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 38.68%. In the past six months, VOYA has gained 20.3%.
The Zacks Consensus Estimate for VOYA’s 2023 and 2024 earnings per share indicates year-over-year increases of 6.1% and 14%, respectively.
Brighthouse Financial’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 2.07%. In the past six months, BHF has gained 20.6%.
The Zacks Consensus Estimate for BHF’s 2023 and 2024 earnings per share indicates year-over-year increases of 29.4% and 12.6%, respectively.
Primerica’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters. In the past six months, PRI has gained 51.6%.
The Zacks Consensus Estimate for PRI’s 2023 and 2024 earnings per share indicates year-over-year increases of 18.3% and 8.9%, respectively.