EQH - Equitable Holdings: Strong Capital Returns Create Upside Potential

2024-05-13 09:49:54 ET

Summary

• Equitable Holdings has experienced strong performance, with shares rising about 75% in the past year.
• The company's Q1 earnings beat expectations, driven by favorable interest rates and increased sales of annuities.
• Equitable's focus on less risky annuity products and its strong balance sheet position it for continued growth and capital returns.

Shares of Equitable Holdings ( EQH ) have been an excellent performer over the past year, rising about 75% as buoyant financial markets, elevated interest rates, and a favorable business mix shift have enhanced the company’s profitability. I last covered EQH in December, rating shares a “buy,” and since that recommendation the stock has rallied about 25%, more than 10% above the market’s return. Shares have also eclipsed my $36 price target, making now an opportune time to revisit shares. I remain bullish....

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