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Manulife Financial Corp (MFC) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Manulife Financial (MFC - Free Report) ? Shares have been on the move with the stock up 8.2% over the past month. The stock hit a new 52-week high of $30.52 in the previous session. Manulife Financial has gained 37.5% since the start of the year compared to the 19.3% move for the Zacks Finance sector and the 24.5% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 7, 2024, Manulife reported EPS of $0.66 versus consensus estimate of $0.64 while it beat the consensus revenue estimate by 5.11%.
Valuation Metrics
Manulife may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Manulife has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.2X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 11X. Additionally, the stock has a PEG ratio of 1.11. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Manulife currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Manulife meets the list of requirements. Thus, it seems as though Manulife shares could have a bit more room to run in the near term.
How Does MFC Stack Up to the Competition?
Shares of MFC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Baldwin Insurance Group, Inc. (BWIN - Free Report) . BWIN has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Baldwin Insurance Group, Inc. beat our consensus estimate by 3.03%, and for the current fiscal year, BWIN is expected to post earnings of $1.56 per share on revenue of $1.39 billion.
Shares of Baldwin Insurance Group, Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 33.13X and a P/CF of 32.7X.
The Insurance - Life Insurance industry is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MFC and BWIN, even beyond their own solid fundamental situation.
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Manulife Financial Corp (MFC) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Manulife Financial (MFC - Free Report) ? Shares have been on the move with the stock up 8.2% over the past month. The stock hit a new 52-week high of $30.52 in the previous session. Manulife Financial has gained 37.5% since the start of the year compared to the 19.3% move for the Zacks Finance sector and the 24.5% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 7, 2024, Manulife reported EPS of $0.66 versus consensus estimate of $0.64 while it beat the consensus revenue estimate by 5.11%.
Valuation Metrics
Manulife may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Manulife has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.2X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 11X. Additionally, the stock has a PEG ratio of 1.11. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Manulife currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Manulife meets the list of requirements. Thus, it seems as though Manulife shares could have a bit more room to run in the near term.
How Does MFC Stack Up to the Competition?
Shares of MFC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Baldwin Insurance Group, Inc. (BWIN - Free Report) . BWIN has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Baldwin Insurance Group, Inc. beat our consensus estimate by 3.03%, and for the current fiscal year, BWIN is expected to post earnings of $1.56 per share on revenue of $1.39 billion.
Shares of Baldwin Insurance Group, Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 33.13X and a P/CF of 32.7X.
The Insurance - Life Insurance industry is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MFC and BWIN, even beyond their own solid fundamental situation.