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 Hold Strategy is Apt for Voya Financial (VOYA)
Read MoreHide Full Article
Voya Financial, Inc.’s (VOYA - Free Report) strategic acquisitions, favorable retention, positive impacts of the Benefitfocus acquisition, improved investment income, stronger surplus income and sufficient liquidity make it worth retaining in one’s portfolio.
Growth Projections
The consensus estimate for 2024 earnings is pegged at $8.86 per share, indicating an 18.7% increase from the year-ago reported figure on 5.9% higher revenues of $1.32 billion.
Earnings Surprise History
Voya Financial has a solid earnings surprise history. It beat estimates in two of the last four quarters and missed in the other two, the average being 13.12%.
Zacks Rank & Price Performance
VOYA currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 2.6% compared with the industry’s rise of 11.1%.
Image Source: Zacks Investment Research
Business Tailwinds
VOYA’s earnings are driven by its solid segmental performances across Wealth Solutions, Investment Management and Health Solutions. These businesses are higher-growth, higher-return and capital-light units, boasting the company’s solid presence in the market.
The Wealth Solutions segment is steadily witnessing significant growth on the back of continued strength in underlying business results, higher surplus income, lower credited interest, improved investment income, weaker fee-based margin, a favorable change in deferred acquisition costs, and value of business acquired and lower administrative expenses. In Wealth Solutions, full-service recurring deposits should continue to gain from growth in the corporate markets.
The Investment Management segment should gain from higher investment capital returns due to its overall market performance and improved fee revenues, driven by higher average equity markets and positive net flows.
VOYA is constantly taking strategic steps to ramp up growth in its Investment Management segment. Voya Financial and Allianz Global Investors inked a long-term strategic partnership that added scale and diversification to Voya Investment Management. The transaction is expected to be accretive to the company’s adjusted operating earnings per share, which is estimated at 6-8% for 2023. In addition, Voya Investment Management’s adjusted operating margin is expected to increase 29-31% in 2023 and 30-32% in 2024.
The Health Solutions segment of Voya Financial is likely to benefit from growth across all product lines, favorable retention and the positive impacts of the Benefitfocus acquisition.
The company’s capital levels remain strong. As of Sep 30, 2023, the estimated combined risk-based capital ratio, with adjustments for certain intercompany transactions, was 403%. VOYA’s organic capital generation demonstrates the high free cash flow generation of businesses. This financial flexibility provides strength to the insurer.
Operational excellence has been helping the company to deploy capital for enhancing shareholders’ value. Increasing the dividend continues to reflect its confidence in the stability of cash flows at more than 90% free cash flow conversion and will help broaden the insurer’s investor base.
Stocks to Consider
Some better-ranked stocks from the life insurance industry are Reinsurance Group of America (RGA - Free Report) , Manulife Financial Corp. (MFC - Free Report) and Primerica, Inc. (PRI - Free Report) . While Reinsurance Group sports a Zacks Rank #1 (Strong Buy), Manulife Financial and Primerica carry a Zacks Rank #2 (Buy) each at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Reinsurance Group beat estimates in three of the last four quarters and missed in one, the average being 18.81%. Over the past year, shares of RGA have gained 16.8%.
The Zacks Consensus Estimate for RGA’s 2024 earnings per share has moved up 0.6% in the past 60 days.
Manulife Financial has a solid track record of beating earnings estimates in each of the last four quarters, the average being 6.66%. Over the past year, shares of MFC have risen 12.1%.
The Zacks Consensus Estimate for MFC’s 2024 earnings per share is pegged at $2.65, indicating a year-over-year increase of 8.2%.
Primerica has a solid track record of beating earnings estimates in each of the last four quarters, the average being 7.84%. Over the past year, shares of PRI have gained 44.1%.
The Zacks Consensus Estimate for PRI’s 2024 earnings per share is pegged at $17.67, indicating an increase of 10.3% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Hold Strategy is Apt for Voya Financial (VOYA)
Voya Financial, Inc.’s (VOYA - Free Report) strategic acquisitions, favorable retention, positive impacts of the Benefitfocus acquisition, improved investment income, stronger surplus income and sufficient liquidity make it worth retaining in one’s portfolio.
Growth Projections
The consensus estimate for 2024 earnings is pegged at $8.86 per share, indicating an 18.7% increase from the year-ago reported figure on 5.9% higher revenues of $1.32 billion.
Earnings Surprise History
Voya Financial has a solid earnings surprise history. It beat estimates in two of the last four quarters and missed in the other two, the average being 13.12%.
Zacks Rank & Price Performance
VOYA currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 2.6% compared with the industry’s rise of 11.1%.
Image Source: Zacks Investment Research
Business Tailwinds
VOYA’s earnings are driven by its solid segmental performances across Wealth Solutions, Investment Management and Health Solutions. These businesses are higher-growth, higher-return and capital-light units, boasting the company’s solid presence in the market.
The Wealth Solutions segment is steadily witnessing significant growth on the back of continued strength in underlying business results, higher surplus income, lower credited interest, improved investment income, weaker fee-based margin, a favorable change in deferred acquisition costs, and value of business acquired and lower administrative expenses. In Wealth Solutions, full-service recurring deposits should continue to gain from growth in the corporate markets.
The Investment Management segment should gain from higher investment capital returns due to its overall market performance and improved fee revenues, driven by higher average equity markets and positive net flows.
VOYA is constantly taking strategic steps to ramp up growth in its Investment Management segment. Voya Financial and Allianz Global Investors inked a long-term strategic partnership that added scale and diversification to Voya Investment Management. The transaction is expected to be accretive to the company’s adjusted operating earnings per share, which is estimated at 6-8% for 2023. In addition, Voya Investment Management’s adjusted operating margin is expected to increase 29-31% in 2023 and 30-32% in 2024.
The Health Solutions segment of Voya Financial is likely to benefit from growth across all product lines, favorable retention and the positive impacts of the Benefitfocus acquisition.
The company’s capital levels remain strong. As of Sep 30, 2023, the estimated combined risk-based capital ratio, with adjustments for certain intercompany transactions, was 403%. VOYA’s organic capital generation demonstrates the high free cash flow generation of businesses. This financial flexibility provides strength to the insurer.
Operational excellence has been helping the company to deploy capital for enhancing shareholders’ value. Increasing the dividend continues to reflect its confidence in the stability of cash flows at more than 90% free cash flow conversion and will help broaden the insurer’s investor base.
Stocks to Consider
Some better-ranked stocks from the life insurance industry are Reinsurance Group of America (RGA - Free Report) , Manulife Financial Corp. (MFC - Free Report) and Primerica, Inc. (PRI - Free Report) . While Reinsurance Group sports a Zacks Rank #1 (Strong Buy), Manulife Financial and Primerica carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Reinsurance Group beat estimates in three of the last four quarters and missed in one, the average being 18.81%. Over the past year, shares of RGA have gained 16.8%.
The Zacks Consensus Estimate for RGA’s 2024 earnings per share has moved up 0.6% in the past 60 days.
Manulife Financial has a solid track record of beating earnings estimates in each of the last four quarters, the average being 6.66%. Over the past year, shares of MFC have risen 12.1%.
The Zacks Consensus Estimate for MFC’s 2024 earnings per share is pegged at $2.65, indicating a year-over-year increase of 8.2%.
Primerica has a solid track record of beating earnings estimates in each of the last four quarters, the average being 7.84%. Over the past year, shares of PRI have gained 44.1%.
The Zacks Consensus Estimate for PRI’s 2024 earnings per share is pegged at $17.67, indicating an increase of 10.3% year over year.