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Brighthouse Financial Trades Below 50-Day SMA: How to Play the Stock?
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Key Takeaways
Brighthouse life insurance sales grew 17.8% in Q2 2025 to $33M, showing strong momentum.
Annuity sales rose 8.4% year over year to $2.6B, led by strong fixed annuity demand.
Expenses jumped 68% to $3.5B in first half of 2025, while long-term debt reached $3.2B.
Brighthouse Financial, Inc. (BHF - Free Report) has been trading below its 50-day simple moving average (SMA), signaling a short-term bearish trend.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
Price Performance of BHF
Shares of BHF have lost 2.8% in the year-to-date period compared with the industry’s decline of 1.6%. The Finance sector and the Zacks S&P 500 Composite have increased 10.6% and 8.9%, respectively, in the same time frame.
The insurer has a market capitalization of $2.7 billion. The average volume of shares traded in the last three months was 0.8million.
Image Source: Zacks Investment Research
BHF Shares Are Affordable
Shares of Brighthouse Financial are trading at a discount compared to the industry. Its price-to-book value of 0.47X is lower than the industry average of 1.87X.
Image Source: Zacks Investment Research
Shares of other insurers, such as Sun Life Financial (SLF - Free Report) and Baldwin Insurance Group, Inc. (BWIN - Free Report) , are trading at a multiple higher than the industry average, while shares of Voya Financial, Inc. (VOYA - Free Report) are trading at a multiple lower than the industry average.
Projections for BHF
The Zacks Consensus Estimate for 2025 revenues is pegged at $8.9 billion, implying a year-over-year improvement of 1.5%. The consensus estimate for Brighthouse Financial’s current-year earnings is pegged at $18.24 per share, down 7.1% from the year-ago reported figure.
The consensus estimate for 2026 earnings per share and revenues indicates year-over-year increases of 19.4% and 3%, respectively.
Mixed Analyst Sentiment on BHF
The Zacks Consensus Estimate for 2025 earnings has moved down 0.8% in the past seven days, while the same for 2026 has moved up 0.2% in the same time frame.
Image Source: Zacks Investment Research
Average Target Price for BHF Suggests Upside
Based on short-term price targets offered by 10 analysts, the Zacks average price target is $56.90per share. The average suggests a potential 23.4% upside from the last closing price.
Image Source: Zacks Investment Research
Key Points to Note for BHF
Brighthouse Financial is working to expand life insurance sales, enhance annuity products, and extend its distribution reach as it pursues industry leadership. With a strong market position and a diverse suite of offerings, the company is positioned to capture growth in the individual insurance market.
Brighthouse Financial continues to gain traction in its core businesses. Annuities remain the key growth driver, with sales more than doubling since 2017 and increasing 8.4% year over year to $2.6 billionin the second quarter of 2025, led by strong fixed annuity demand, offset partly by softer Shield Level sales. In the second quarter of 2025, life insurance sales rose 17.8% sequentially to $33 million, reflecting steady product momentum.
The company expects this positive trajectory to continue, underpinned by a comprehensive and balanced product portfolio. Execution of its life insurance strategy, including onboarding new distribution partners and strengthening its wholesaler network, should serve as additional catalysts, helping Brighthouse Financial capture more opportunities and solidify its position as a leading provider of retirement and protection solutions.
Brighthouse Financial has been reshaping its product lineup to keep pace with changing client demands. Its SecureKey fixed indexed annuities have widened the company’s presence in the indexed annuity space. The portfolio was further diversified with SmartGuard Plus, Brighthouse Financial’s first universal life product tied to market indexes.
Brighthouse Financial’s adjusted net investment income yield has trended higher in recent years, reaching 4.27% in the first half of 2025. Supported by a conservative approach and a well-diversified, high-quality portfolio, the yield is expected to continue improving. The company is also reducing exposure to below-investment-grade and higher-risk credit positions, while targeting a long-term annual return of 9%–11% on its alternative investment portfolio.
Financial Headwinds for BHF
Despite solid business fundamentals, Brighthouse Financial remains under pressure from rising expenses, higher policyholder claims, and weakening margins.In the first half of 2025, total expenses surged 68% to $3.5 billion, while net margin declined to negative 6%. Corporate expenses also rose, reaching $200 million in the second quarter, a 10% increase from the prior year.
Brighthouse Financial’s mounting debt burden has intensified financial strain, with total borrowings rising fivefold over the past five years. As of the latest period, long-term debt stood at $3.2 billion, pushing its debt-to-equity ratio to 55%, far above the industry average of 16.7%. Return on invested capital was just 0.5%, slightly under the 0.6% industry benchmark, underscoring inefficiencies that could pressure future returns.
Conclusion
Brighthouse Financial is gaining ground through strong annuity sales, improving life insurance momentum, and a growing investment yield supported by a conservative portfolio approach. Yet, rising expenses, elevated debt levels, and weak capital efficiency remain notable challenges that could offset these gains and pressure long-term performance.
Image: Bigstock
Brighthouse Financial Trades Below 50-Day SMA: How to Play the Stock?
Key Takeaways
Brighthouse Financial, Inc. (BHF - Free Report) has been trading below its 50-day simple moving average (SMA), signaling a short-term bearish trend.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
Price Performance of BHF
Shares of BHF have lost 2.8% in the year-to-date period compared with the industry’s decline of 1.6%. The Finance sector and the Zacks S&P 500 Composite have increased 10.6% and 8.9%, respectively, in the same time frame.
The insurer has a market capitalization of $2.7 billion. The average volume of shares traded in the last three months was 0.8million.
BHF Shares Are Affordable
Shares of Brighthouse Financial are trading at a discount compared to the industry. Its price-to-book value of 0.47X is lower than the industry average of 1.87X.
Shares of other insurers, such as Sun Life Financial (SLF - Free Report) and Baldwin Insurance Group, Inc. (BWIN - Free Report) , are trading at a multiple higher than the industry average, while shares of Voya Financial, Inc. (VOYA - Free Report) are trading at a multiple lower than the industry average.
Projections for BHF
The Zacks Consensus Estimate for 2025 revenues is pegged at $8.9 billion, implying a year-over-year improvement of 1.5%. The consensus estimate for Brighthouse Financial’s current-year earnings is pegged at $18.24 per share, down 7.1% from the year-ago reported figure.
The consensus estimate for 2026 earnings per share and revenues indicates year-over-year increases of 19.4% and 3%, respectively.
Mixed Analyst Sentiment on BHF
The Zacks Consensus Estimate for 2025 earnings has moved down 0.8% in the past seven days, while the same for 2026 has moved up 0.2% in the same time frame.
Average Target Price for BHF Suggests Upside
Based on short-term price targets offered by 10 analysts, the Zacks average price target is $56.90per share. The average suggests a potential 23.4% upside from the last closing price.
Key Points to Note for BHF
Brighthouse Financial is working to expand life insurance sales, enhance annuity products, and extend its distribution reach as it pursues industry leadership. With a strong market position and a diverse suite of offerings, the company is positioned to capture growth in the individual insurance market.
Brighthouse Financial continues to gain traction in its core businesses. Annuities remain the key growth driver, with sales more than doubling since 2017 and increasing 8.4% year over year to $2.6 billionin the second quarter of 2025, led by strong fixed annuity demand, offset partly by softer Shield Level sales. In the second quarter of 2025, life insurance sales rose 17.8% sequentially to $33 million, reflecting steady product momentum.
The company expects this positive trajectory to continue, underpinned by a comprehensive and balanced product portfolio. Execution of its life insurance strategy, including onboarding new distribution partners and strengthening its wholesaler network, should serve as additional catalysts, helping Brighthouse Financial capture more opportunities and solidify its position as a leading provider of retirement and protection solutions.
Brighthouse Financial has been reshaping its product lineup to keep pace with changing client demands. Its SecureKey fixed indexed annuities have widened the company’s presence in the indexed annuity space. The portfolio was further diversified with SmartGuard Plus, Brighthouse Financial’s first universal life product tied to market indexes.
Brighthouse Financial’s adjusted net investment income yield has trended higher in recent years, reaching 4.27% in the first half of 2025. Supported by a conservative approach and a well-diversified, high-quality portfolio, the yield is expected to continue improving. The company is also reducing exposure to below-investment-grade and higher-risk credit positions, while targeting a long-term annual return of 9%–11% on its alternative investment portfolio.
Financial Headwinds for BHF
Despite solid business fundamentals, Brighthouse Financial remains under pressure from rising expenses, higher policyholder claims, and weakening margins.In the first half of 2025, total expenses surged 68% to $3.5 billion, while net margin declined to negative 6%. Corporate expenses also rose, reaching $200 million in the second quarter, a 10% increase from the prior year.
Brighthouse Financial’s mounting debt burden has intensified financial strain, with total borrowings rising fivefold over the past five years. As of the latest period, long-term debt stood at $3.2 billion, pushing its debt-to-equity ratio to 55%, far above the industry average of 16.7%. Return on invested capital was just 0.5%, slightly under the 0.6% industry benchmark, underscoring inefficiencies that could pressure future returns.
Conclusion
Brighthouse Financial is gaining ground through strong annuity sales, improving life insurance momentum, and a growing investment yield supported by a conservative portfolio approach. Yet, rising expenses, elevated debt levels, and weak capital efficiency remain notable challenges that could offset these gains and pressure long-term performance.
Given the mixed analyst sentiments and unfavorable ROIC, it is therefore wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.