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Here's Why You Should Retain MetLife (MET) in Your Portfolio

Zacks Equity Research

MetLife Inc. MET is poised for growth on the back of its strong underwriting revenues, solid balance sheet and superior operating profitability.

The company recently announced a trial run of a completely revamped claims process by the use of Blockchain technology. The process, if successful and put into application, will be much cheaper than the manual alternative. This could allow MetLife to spend less on administrative costs, and therefore generate greater earnings.

The stock carries a Zacks Rank #2 (Buy) and an impressive Value Score of A. Our research shows that stocks with a Value Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best opportunities in the value investing space.

The stock has gained 11.2% in a year’s time, compared with the industry’s rise of 5.95%.

 

The following factors nakes the stock look attractive:

Low Leverage: The company’s long term debt-to-equity ratio of 23.7% is lower than the industry average of 43.6%. A low level of debt provides financial strength to it and cements investors’ confidence.

High Profitability: MetLife’s ROE is 10.2% compared with the industry average of 7.9%. The ratio has increased over the past three years.  

Revision in Earnings Estimates: The stock has witnessed an upward revision in its 2019 and 2020 earnings estimates over the past 60 days. This movement reflects analysts’ optimism for the company. Also, its 2019 earnings will likely grow 4.1% year over year.

Financial Flexibility: Free cash flow per share for MetLife is 2.36 compared with the industry’s average of 2.17.

Other Stocks

Other stocks worth considering are American International Group, Inc. AIG Loews Corp. L and The Hartford Financial Services Group, Inc. HIG. While American International and Loewssport a Zacks Rank #1, The Hartford Financial Services carries a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank stocks here.

American International Group,  Loews, and The Hartford  have witnessed an upward revision in 2019 earnings estimates by 12.3%, 6.3% and 2%, respectively, over the past 60 days.

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The Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis Report
 
American International Group, Inc. (AIG) : Free Stock Analysis Report
 
Loews Corporation (L) : Free Stock Analysis Report
 
MetLife, Inc. (MET) : Free Stock Analysis Report
 
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