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Manulife Financial Corporation (MFC - Free Report) hit a 52-week high of $41.74 on July 13. Shares closed at $41.29 after gaining 36.5% in the past year, outperforming the industry’s growth of 25.1%, the sector's return of 15% and the Zacks S&P 500 composite's appreciation of 24.6%.
Manulife Financial has outperformed its peers, including Primerica, Inc. (PRI - Free Report) , Sun Life Financial Inc. (SLF - Free Report) and Reinsurance Group of America, Incorporated (RGA - Free Report) . Shares of PRI, SLF and RGA have rallied 19.2%, 26.6% and 23.8%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $68.77 billion, the average number of shares traded in the last three months was 2.1 million.
The life insurer has a solid track record of beating earnings estimates in two of the past four quarters and missing in the other two, with an average surprise of 3.36%.
MFC Trading Above 50-Day and 200-Day Moving Averages
Shares of Manulife Financial are trading above the 50-day and 200-day simple moving averages (SMA) of $39.54 and $36.21, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
MFC’s Growth Projection Encourages
The Zacks Consensus Estimate for Manulife Financial’s 2026 earnings per share indicates a year-over-year increase of 6.3%. The estimate for 2027 earnings per share indicates an increase of 11.1% from the corresponding 2026 estimates.
Manulife Financial’s Higher Return on Capital
Return on equity in the trailing 12 months was 16.6%, better than the industry average of 15.9%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Key Points to Note for MFC
Manulife Financial is aggressively developing its business in Asia, which, in turn, is reaping solid operational results. Asia is a major contributor to the company’s earnings. New business growth in Asia has been aiding the company’s operational results. Thus, the insurer is continually scaling up its business across Asia. We believe MFC is well-positioned to benefit from continued business growth momentum, higher expected earnings on insurance contracts and higher expected investment earnings, with notable growth from the largest in-force business, Hong Kong and an expanding distribution network.
Manulife Financial is expanding its Wealth and Asset Management business and has identified Europe (and the wider EMEA market) as a significant growth area. It is making long-term investments in this region.
MFC has been accelerating growth in the highest-potential businesses. Its inorganic growth is impressive, as this life insurer prudently deploys capital in high-growth, less capital-intensive and higher-return businesses.
Banking on its sturdy capital position, MFC distributes wealth to shareholders through higher dividends and share buybacks. The company has increased its dividend at a seven-year CAGR of 10% and targets a 35-45% dividend payout over the medium term.
MFC is strengthening its balance sheet and thus targets a leverage ratio of 25%. Its free cash flow conversion has remained more than 100% over the last few quarters, reflecting its solid earnings.
End Notes
Manulife Financial is set to grow on solid Asia business, growing Wealth and Asset Management business, strong free cash flow conversion ratio and a solid capital position. A medium-term expense efficiency ratio target of less than 45%, banking on diligent expense management, should drive growth.
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Image: Bigstock
MFC Outperforms Industry, Hits 52-Week High: How to Play the Stock
Key Takeaways
Manulife Financial Corporation (MFC - Free Report) hit a 52-week high of $41.74 on July 13. Shares closed at $41.29 after gaining 36.5% in the past year, outperforming the industry’s growth of 25.1%, the sector's return of 15% and the Zacks S&P 500 composite's appreciation of 24.6%.
Manulife Financial has outperformed its peers, including Primerica, Inc. (PRI - Free Report) , Sun Life Financial Inc. (SLF - Free Report) and Reinsurance Group of America, Incorporated (RGA - Free Report) . Shares of PRI, SLF and RGA have rallied 19.2%, 26.6% and 23.8%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $68.77 billion, the average number of shares traded in the last three months was 2.1 million.
The life insurer has a solid track record of beating earnings estimates in two of the past four quarters and missing in the other two, with an average surprise of 3.36%.
MFC Trading Above 50-Day and 200-Day Moving Averages
Shares of Manulife Financial are trading above the 50-day and 200-day simple moving averages (SMA) of $39.54 and $36.21, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
MFC’s Growth Projection Encourages
The Zacks Consensus Estimate for Manulife Financial’s 2026 earnings per share indicates a year-over-year increase of 6.3%. The estimate for 2027 earnings per share indicates an increase of 11.1% from the corresponding 2026 estimates.
Manulife Financial’s Higher Return on Capital
Return on equity in the trailing 12 months was 16.6%, better than the industry average of 15.9%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Key Points to Note for MFC
Manulife Financial is aggressively developing its business in Asia, which, in turn, is reaping solid operational results. Asia is a major contributor to the company’s earnings. New business growth in Asia has been aiding the company’s operational results. Thus, the insurer is continually scaling up its business across Asia. We believe MFC is well-positioned to benefit from continued business growth momentum, higher expected earnings on insurance contracts and higher expected investment earnings, with notable growth from the largest in-force business, Hong Kong and an expanding distribution network.
Manulife Financial is expanding its Wealth and Asset Management business and has identified Europe (and the wider EMEA market) as a significant growth area. It is making long-term investments in this region.
MFC has been accelerating growth in the highest-potential businesses. Its inorganic growth is impressive, as this life insurer prudently deploys capital in high-growth, less capital-intensive and higher-return businesses.
Banking on its sturdy capital position, MFC distributes wealth to shareholders through higher dividends and share buybacks. The company has increased its dividend at a seven-year CAGR of 10% and targets a 35-45% dividend payout over the medium term.
MFC is strengthening its balance sheet and thus targets a leverage ratio of 25%. Its free cash flow conversion has remained more than 100% over the last few quarters, reflecting its solid earnings.
End Notes
Manulife Financial is set to grow on solid Asia business, growing Wealth and Asset Management business, strong free cash flow conversion ratio and a solid capital position. A medium-term expense efficiency ratio target of less than 45%, banking on diligent expense management, should drive growth.
Consistent wealth distribution makes it an attractive pick for yield-seeking investors, and favorable ROE also poises it. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.