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Manulife Financial Corp (MFC) Hit a 52 Week High, Can the Run Continue?
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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 7.3% over the past month. The stock hit a new 52-week high of $32.94 in the previous session. Manulife Financial has gained 46.1% since the start of the year compared to the 23.3% move for the Zacks Finance sector and the 30.4% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has a great 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 November 6, 2024, Manulife reported EPS of $0.73 versus consensus estimate of $0.7 while it beat the consensus revenue estimate by 9.93%.
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 has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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 C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.2X. On a trailing cash flow basis, the stock currently trades at 9.7X versus its peer group's average of 11.5X. Additionally, the stock has a PEG ratio of 1.17. 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 #2 (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 potential in the weeks and months to come.
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 Lincoln National Corporation (LNC - Free Report) . LNC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. Lincoln National Corporation beat our consensus estimate by 25.61%, and for the current fiscal year, LNC is expected to post earnings of $7.63 per share on revenue of $18.4 billion.
Shares of Lincoln National Corporation have gained 12.2% over the past month, and currently trade at a forward P/E of 5.34X and a P/CF of 6.4X.
The Insurance - Life Insurance industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MFC and LNC, even beyond their own solid fundamental situation.
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Manulife Financial Corp (MFC) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Manulife Financial (MFC - Free Report) ? Shares have been on the move with the stock up 7.3% over the past month. The stock hit a new 52-week high of $32.94 in the previous session. Manulife Financial has gained 46.1% since the start of the year compared to the 23.3% move for the Zacks Finance sector and the 30.4% return for the Zacks Insurance - Life Insurance industry.
What's Driving the Outperformance?
The stock has a great 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 November 6, 2024, Manulife reported EPS of $0.73 versus consensus estimate of $0.7 while it beat the consensus revenue estimate by 9.93%.
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 has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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 C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.2X. On a trailing cash flow basis, the stock currently trades at 9.7X versus its peer group's average of 11.5X. Additionally, the stock has a PEG ratio of 1.17. 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 #2 (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 potential in the weeks and months to come.
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 Lincoln National Corporation (LNC - Free Report) . LNC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. Lincoln National Corporation beat our consensus estimate by 25.61%, and for the current fiscal year, LNC is expected to post earnings of $7.63 per share on revenue of $18.4 billion.
Shares of Lincoln National Corporation have gained 12.2% over the past month, and currently trade at a forward P/E of 5.34X and a P/CF of 6.4X.
The Insurance - Life Insurance industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MFC and LNC, even beyond their own solid fundamental situation.