2024-02-03 08:07:10 ET
Summary
- MetLife gets its hold rating from August reaffirmed, as we are slightly more cautious today vs the bullish consensus.
- Positives include a decade of dividend growth, recent YoY growth in revenue/earnings/equity, and future EPS growth estimates fueled by a high interest rate environment.
- Its dividend yield is unremarkable compared to large insurance peers, and the risk of having around 25% of its mortgage portfolio tied to office loans is cause for mild caution.
Quick Overview
With banks making headlines this week again, I wanted to touch upon a subsector of the financials segment that is often under-covered but often presents an interesting investing opportunity as I've written about in the last year, and that is insurance. Though it may not be the mainstream media's hip and cool startup from Silicon Valley, what it lacks in media hype it makes up in fundamentals , which we think is more important.
In fact, you may remember the opening scene of the 1980s movie Wall Street , where the experienced broker tells the younger folks to "stick to the fundamentals.. that's how IBM and Hilton were built. Good things sometimes take time."...
Read the full article on Seeking Alpha
For further details see:
MetLife: A Safe Bet To Hold As Future Earnings Growth Expected, And Tailwind From Rate Environment