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New York-based MetLife, Inc. (MET), is a global leader in insurance, annuities, and employee benefits, boasting a market cap of $54.2 billion. With a presence in over 60 countries, MetLife serves millions of customers by offering a diverse range of products, including life, dental, and disability insurance, as well as financial services.
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.
MetLife boasts a strong global presence, particularly in the U.S., Japan, and Latin America, with a diversified business model that mitigates market volatility and capitalizes on growth opportunities.
However, MetLife has slipped 4% from its 52-week high of $79.34, achieved on August 1. Moreover, the stock has soared 11% over the last three months, outperforming the broader Financial Select Sector SPDR Fund’s (XLF) 9.2% gains over the same time frame.
However, over the longer term, shares of MetLife are up 15.2% on a YTD basis and 19.4% over the past 52 weeks. In comparison, XLF is up 18.4% returns in 2024 and 28.3% gains over the past 52 weeks.
However, MET has been trading consistently above its 200-day moving average since mid-November and has also remained above its 50-day moving average since early August, indicating a bearish trend.
The leading life insurance company released its Q2 earnings report on Jul. 31, and its shares dropped more than 10% in the following three trading sessions despite exceeding the Street’s expectations. While favorable underwriting results in Group Benefits and Asia, along with increased net investment income from rising rates, enhanced quarterly performance, elevated expenses, and segment-specific challenges—such as declining earnings in RIS due to lower recurring interest margins—concerned investors.
MetLife’s rival, Aflac Incorporated (AFL), has outpaced not only MET but also the broader market. Shares of Sun Life have returned 31.6% on a YTD basis and 42.2% 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 $86.42 suggests an upside potential of 13.4% from the current price levels.
On the date of publication, Kritika Sarmah 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.
