Insurance giant MetLife rebounded late last year and is putting up strong sales and profit numbers. Its stock got an upgrade to its Relative Strength (RS) Rating Monday, from 79 to 82. Additionally, MetLife stock is up 50% over the past year and just below a fresh buy point.
MetLife Stock Joins Top Performers Group
The upgraded 82 RS Rating means that MetLife stock topped 82% of all stocks for price performance this past year. History reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves.
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New York City-based MetLife, which also does business as Metropolitan Life Insurance Company, provides life insurance, annuities, employee benefits and wealth management services. The 156-year old insurance giant reported $16.1 billion revenue last quarter, up 4%, on a 20% increase in earnings to $1.83 per share. The prior quarter EPS climbed 21% on a 22% pop in sales.
Among its other key ratings MetLife has an 87 Earnings Per Share Rating, putting it in the top 13% of all companies for earnings growth. Additionally it has a 73 Composite Rating and a bullish B SMR Rating (sales + profit margins + return on equity), reflecting strong fundamentals.
One yellow flag is its D- Accumulation/Distribution Rating on an A+ to E scale. The D- rating shows that institutional investors like university and insurance company funds, and ETFs are selling more shares than buying. Look for that to improve to a C or better.
About 50% Stock Price Hike In Past Year
MetLife stock dropped to a 48.95 low a year ago in mid-May amid sluggish sales. It's shot about 50% higher since then, a really strong showing for a company as large as MetLife. Currently, it's just below a 74.67 buy point of a flat base. See if it can break out in volume at least 40% above average.
MetLife stock earns the No. 6 rank among its peers in the 18-stock Insurance-Life industry group. Reinsurance Group of America, F&G Annuities & Life and Corebridge Financial are among the top 5 highly rated stocks in the group.
IBD's unique Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matches up against the rest of the market.
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