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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 market cap of $48.3 billion. 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.
Companies worth $10 billion or more are generally described as "large-cap stocks," and MetLife fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the insurance and financial services industry. The company, through its offerings of various insurance products and services, has established a strong foothold in the industry.
However, MetLife has slipped 7.1% from its 52-week high of $74.68, achieved on April 4. Moreover, the stock has dipped 4.2% over the last three months, underperforming the Dow Jones Industrial Average’s ($DOWI) marginal gains during the same time frame.
However, over the longer term, shares of MetLife are up 4.9% on a YTD basis and 25% over the past 52 weeks, exceeding DOWI’s 2.9% returns in 2024 and 13.1% gains over the past 52 weeks.
To confirm the bullish price trend, MET has been trading consistently above its 200-day moving average since mid-November and has also remained mostly above its 100-day moving average but with a few fluctuations.
MET stock has outperformed the broader market over the past year, fueled by soaring profits, dividend increases, and share buybacks. Its solid financial performance, strategic alliances, cost-cutting efforts, and active growth strategies have all added to the allure. But, in 2024, unexpected net derivative losses and a slip in book value per share briefly slowed its momentum, causing a temporary dip in share value even as revenue climbed and dividends increased.
MetLife’s rival, Sun Life Financial Inc. (SLF), is not just underperforming MetLife but also the broader market. Shares of Sun Life have dipped 7.7% on a YTD basis and 6% over the past 52 weeks.
Analysts have been bullish on MET’s prospects. The stock holds a consensus rating of “Strong Buy” from 15 analysts covering it, and the mean target of $83.42 suggests an upside potential of 20.2% to the current price levels.
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.
