Reasons Why Brighthouse Financial (BHF) is a Solid Pick Now
Brighthouse Financial, Inc. BHF has been gaining momentum on the back of higher net investment income, a higher underwriting margin, sufficient liquidity and prudent capital deployment.
Growth Projections
The Zacks Consensus Estimate for Brighthouse’s 2023 earnings is pegged at $14.59, indicating a 33.4% increase from the year-ago reported figure on 2.6% higher revenues of $8.47 billion.
The consensus estimate for 2024 earnings is $16.26, indicating a 11.4% increase from the year-ago reported figure on 2.1% higher revenues of $8.65 billion.
Estimate Revision
The Zacks Consensus Estimate for Brighthouse’s 2023 and 2024 earnings has moved 6.9% and 5.9% north, respectively, in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
Brighthouse beat estimates in three of the last four quarters and missed in one with the average being 2.07%.
Zacks Rank & Price Performance
Brighthouse currently carries a Zacks Rank #1 (Strong Buy). In the past year, the stock has lost 5.3% compared with the industry’s decline of 10%.
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Business Tailwinds
Brighthouse remains well poised for growth with solid performances by the Annuities, Life and Run-off segments.
Riding on fixed deferred annuities and Shield Level Annuities, total annuity sales are likely to increase.
Brighthouse remained focused on enhancing the product portfolio with the launch of Shield Level Pay Plus. The product is designed to strengthen clients' retirement portfolios by providing a stream of guaranteed lifetime income. It will also offer them opportunities to participate in market growth combined with a level of protection against market volatility.
The Run-off segment is likely to gain from higher net investment income and a higher underwriting margin.
Riding on higher alternative investment income, a well-diversified and high-quality portfolio as well as a conservative investment strategy, Brighthouse’s adjusted net investment income is expected to improve.
Brighthouse’s capitalization remained strong with an estimated combined risk-based capital or RBC ratio was approximately 440% at year-end. BHF continues to target an RBC ratio in the range of 400% to 450% in normal markets.
A solid statutory balance sheet and sufficient cash continue to support the repurchase strategy. Currently, it has $293 million remaining under its share repurchase authorization.
Other Stocks to Consider
Some top-ranked stocks from the life-insurance industry are Primerica, Inc. PRI, Manulife Financial Corp MFC and Sun Life Financial Inc. SLF. While Primerica sports a Zacks Rank #1, Manulife Financialand and Sun Life Financial carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Primerica’s 2023 and 2024 earnings has moved 7.1% and 8.7% north, respectively, in the past 30 days. In the past year, PRI has gained 28.7%.
The Zacks Consensus Estimate for PRI’s 2023 and 2024 earnings implies a respective year-over-year rise of 23.5% and 12.3%.
The Zacks Consensus Estimate for Manulife Financial’s 2023 and 2024 earnings implies a respective year-over-year rise of 0.8% and 9.27%. In the past year, the insurer has lost 3.9%.
The Zacks Consensus Estimate for MFC’s 2023 and 2024 earnings has moved 1.2% and 1.5% north, respectively, in the past 30 days.
Sun Life Financial delivered a trailing four-quarter average earnings surprise of 9.14%. In the past year, SLF has lost 14.8%.
The Zacks Consensus Estimate for SLF’s 2024 earnings implies a year-over-year rise of 8.1%.
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Manulife Financial Corp (MFC) : Free Stock Analysis Report
Primerica, Inc. (PRI) : Free Stock Analysis Report
Sun Life Financial Inc. (SLF) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
