MetLife Stock: Is Wall Street Bullish or Bearish?

With a market cap of $57.2 billion, MetLife, Inc. (MET) is a leading global financial services and insurance company. Based in New York, it provides a wide range of insurance, annuity, and asset management products to individuals and institutions across various markets worldwide.

Shares of the insurer have outperformed the broader market over the past 52 weeks. MET has increased 34.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.2%. In 2024, shares of MET are up 25.9%, compared to SPX’s 23.9% gain on a YTD basis.

However, MET has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 43.9% return over the past 52 weeks and 32.8% return on a YTD basis.

MetLife's shares dipped 5.7% following its weaker-than-expected Q3 2024 earnings release on Oct. 30, with adjusted operating earnings of $1.93 per share and revenues of $17.6 billion. Elevated expenses negatively impacted results, including a 7.3% year-over-year rise driven by higher interest credited to policyholder accounts. Segment-specific challenges, such as declining recurring interest margins in RIS and less favorable non-medical health underwriting in Group Benefits, further dampened investor confidence.

For the current fiscal year, ending in December, analysts expect MET’s EPS to grow 14.3% year-over-year to $8.38. The company’s earnings surprise history is mixed. It beat or met the consensus estimates in two of the last four quarters while missing on two other occasions.

Among the 16 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”

This configuration is more bullish than three months ago, with nine “Strong Buy” ratings on the stock.

On Nov. 14, Evercore ISI raised MetLife’s price target to $100 and maintained an “Outperform" rating, citing the potential for higher re-rating in the life insurance sector. The firm highlights reduced risks from divestitures, risk transfers, and favorable post-election market conditions as key drivers.

As of writing, MET is trading below the mean price target of $90.64. The Street-high price target of $101 implies a potential upside of nearly 22% from the current price levels.

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On the date of publication, Sohini Mondal 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.

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