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New York-based MetLife, Inc. (MET), incorporated in 1999, is a global leader in insurance, annuities, and employee benefits, with a $51.6 billion market cap. Serving millions of customers in over 60 countries, MetLife offers various life, dental, disability, and financial services, maintaining strong returns on equity and a straightforward business model.
Shares of MetLife have outperformed the broader market over the past 52 weeks. MET has surged by 44.4% over this time frame, while the broader S&P 500 Index ($SPX) rallied 28.9%. However, in 2024, MET’s 9.7% gains trail behind SPX's 11.2% gains on a YTD basis.
Narrowing the focus, while MET outperforms the Insurance ETF SPDR’s (KIE) 30.9% returns over the past 52 weeks, the exchange-traded fund's 12.4% YTD gain outshines MET’s single-digit returns over the same time frame.
MET stock has outperformed the broader market over the past year due to rising profits, dividend increases, and share repurchases. Strong financial performance, strategic alliances, cost-cutting efforts, and active growth strategies have also boosted its appeal. However, in 2024, unexpected net derivative losses and a drop in book value per share caused a temporary dip in share value despite overall revenue growth and a dividend increase.
For the current fiscal year, ending in December, analysts expect MetLife’s EPS to surge by 17.6% to $8.62. The company's earnings surprise history is mixed. It beat or matched consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 15 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on ten “Strong Buys,” two “Moderate Buys,” and three “Holds.”
This configuration has been consistent over the past three months.
On May 22, Argus maintained a “Buy” rating on MetLife and raised the price target from $77 to $80 following strong Q1 earnings results, driven by higher net investment income and increased business volume in Asia. Highlighting MetLife's strategic growth and business diversification, Argus sees MetLife's stock trading at attractive valuations and believes in its potential for continued shareholder value creation.
The mean price target of $83.42 suggests a premium of 15% to MET's current levels. The Street-high price target of $99 represents an upside potential of 36.5%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
