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Here's Why Hold Strategy is Apt for Corebridge (CRBG) Stock
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Corebridge Financial, Inc. (CRBG - Free Report) is aided by rising premiums attributable to a diversified product suite and new business growth. Partnerships, strong segmental contribution and solid cash-generating abilities are additional tailwinds for the stock.
Zacks Rank & Price Performance
Corebridge currently carries a Zacks Rank #3 (Hold).
The stock has gained 25.6% in the year-to-date period compared with the industry’s 6.8% growth. The Zacks Finance sector and the S&P 500 Composite have increased 4.1% and 9.4%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Rising Estimates
The Zacks Consensus Estimate for Corebridge’s 2024 earnings is pegged at $4.87 per share, indicating an improvement of 18.8% from the 2023 metric.
The consensus mark for revenues is $23.1 billion, suggesting 24.1% growth from the 2023 metric.
CRBG’s bottom line surpassed earnings estimates in three of the trailing four quarters and missed the mark once, the average surprise being 7%.
Solid Return on Equity
The return on equity for Corebridge is currently 23.1%, which is higher than the industry’s average of 13.7%. The figure substantiates the company’s efficiency in utilizing shareholders’ funds.
Key Drivers
The top line of Corebridge continues to benefit from improving premiums and net investment income. Premiums, being the most significant contributor to any insurer’s revenues, surged 51.1% year over year in 2023 for CRBG. This revenue component witnesses steady growth from the traditional life insurance and annuity product suite of CRBG. Increased policy sales and high retention rates also contribute to premium growth.
Meanwhile, higher yields earned from the investment portfolio also continue to drive the top-line growth of Corebridge. The company’s enhanced advisory platform provides full-service investment and retirement planning services to long-term clients and their families, thereby fetching an uninterrupted flow of advisory fee income. An aging U.S. population is expected to sustain the solid demand for the retirement planning services provided by CRBG in the days ahead.
Corebridge offers a diversified product and services suite through its Individual Retirement, Group Retirement, Life Insurance and Institutional Markets businesses. The combined expertise of the four business units continues to generate significant cash flows for CRBG. It adds lucrative features and options to its product portfolio, which, in turn, reflects efforts to meet the evolving needs of the customer base.
Corebridge pursues tie-ups to enhance its product portfolio and expand its market reach. The strategic partnership with Blackstone (BX - Free Report) is meant to impart CRBG the strength of originating attractive and privately sourced fixed-income oriented assets and hence, attain a competitive edge over its industry peers. It also does not shy away from divestitures that release capital and enable CRBG to intensify its focus on core operations. CRBG divested its UK life insurance business to Aviva plc in a bid to focus its resources on Life & Retirement solutions.
The insurer undertakes technology investments, which seem time opportune in light of the widespread adoption of digital means across every sphere of life. Progress in digitizing the advisors’ end-to-end toolkits of CRBG bears testament to one such investment that will inevitably provide seamless interactive experiences, new business and higher participant enrollment.
In addition to funds received from divestitures, strong cash reserves and robust operating cash flows equip Corebridge to pursue uninterrupted business investments. It generated operating cash flows of $3.4 billion in 2023.
The financial strength also imparts the power to return more value to shareholders through share buybacks and dividend payments. In December 2023, CRBG bought back common shares worth $150 million from American International Group (AIG - Free Report) and a BX affiliate. Its dividend yield of 3.4% remains higher than the industry’s figure of 2.6%. It targets a 60%-65% payout ratio for 2024.
Coinbase Global has a solid track record of beating earnings estimates in each of the last four quarters, the average being 377.57%. In the past year, shares of COIN have skyrocketed 286.4%.
The Zacks Consensus Estimate for COIN’s 2024 and 2025 earnings has moved 66.3% and 114.7% north, respectively, in the past 30 days, reflecting analysts’ optimism.
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Here's Why Hold Strategy is Apt for Corebridge (CRBG) Stock
Corebridge Financial, Inc. (CRBG - Free Report) is aided by rising premiums attributable to a diversified product suite and new business growth. Partnerships, strong segmental contribution and solid cash-generating abilities are additional tailwinds for the stock.
Zacks Rank & Price Performance
Corebridge currently carries a Zacks Rank #3 (Hold).
The stock has gained 25.6% in the year-to-date period compared with the industry’s 6.8% growth. The Zacks Finance sector and the S&P 500 Composite have increased 4.1% and 9.4%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Rising Estimates
The Zacks Consensus Estimate for Corebridge’s 2024 earnings is pegged at $4.87 per share, indicating an improvement of 18.8% from the 2023 metric.
The consensus mark for revenues is $23.1 billion, suggesting 24.1% growth from the 2023 metric.
CRBG’s bottom line surpassed earnings estimates in three of the trailing four quarters and missed the mark once, the average surprise being 7%.
Solid Return on Equity
The return on equity for Corebridge is currently 23.1%, which is higher than the industry’s average of 13.7%. The figure substantiates the company’s efficiency in utilizing shareholders’ funds.
Key Drivers
The top line of Corebridge continues to benefit from improving premiums and net investment income. Premiums, being the most significant contributor to any insurer’s revenues, surged 51.1% year over year in 2023 for CRBG. This revenue component witnesses steady growth from the traditional life insurance and annuity product suite of CRBG. Increased policy sales and high retention rates also contribute to premium growth.
Meanwhile, higher yields earned from the investment portfolio also continue to drive the top-line growth of Corebridge. The company’s enhanced advisory platform provides full-service investment and retirement planning services to long-term clients and their families, thereby fetching an uninterrupted flow of advisory fee income. An aging U.S. population is expected to sustain the solid demand for the retirement planning services provided by CRBG in the days ahead.
Corebridge offers a diversified product and services suite through its Individual Retirement, Group Retirement, Life Insurance and Institutional Markets businesses. The combined expertise of the four business units continues to generate significant cash flows for CRBG. It adds lucrative features and options to its product portfolio, which, in turn, reflects efforts to meet the evolving needs of the customer base.
Corebridge pursues tie-ups to enhance its product portfolio and expand its market reach. The strategic partnership with Blackstone (BX - Free Report) is meant to impart CRBG the strength of originating attractive and privately sourced fixed-income oriented assets and hence, attain a competitive edge over its industry peers. It also does not shy away from divestitures that release capital and enable CRBG to intensify its focus on core operations. CRBG divested its UK life insurance business to Aviva plc in a bid to focus its resources on Life & Retirement solutions.
The insurer undertakes technology investments, which seem time opportune in light of the widespread adoption of digital means across every sphere of life. Progress in digitizing the advisors’ end-to-end toolkits of CRBG bears testament to one such investment that will inevitably provide seamless interactive experiences, new business and higher participant enrollment.
In addition to funds received from divestitures, strong cash reserves and robust operating cash flows equip Corebridge to pursue uninterrupted business investments. It generated operating cash flows of $3.4 billion in 2023.
The financial strength also imparts the power to return more value to shareholders through share buybacks and dividend payments. In December 2023, CRBG bought back common shares worth $150 million from American International Group (AIG - Free Report) and a BX affiliate. Its dividend yield of 3.4% remains higher than the industry’s figure of 2.6%. It targets a 60%-65% payout ratio for 2024.
A Stock to Consider
A better-ranked stock from the finance sector is Coinbase Global, Inc. (COIN - Free Report) . The stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coinbase Global has a solid track record of beating earnings estimates in each of the last four quarters, the average being 377.57%. In the past year, shares of COIN have skyrocketed 286.4%.
The Zacks Consensus Estimate for COIN’s 2024 and 2025 earnings has moved 66.3% and 114.7% north, respectively, in the past 30 days, reflecting analysts’ optimism.