Stock of the Day

November 11, 2019

MetLife (MET)

$79.37
+$0.81 (+1.0%)
Market Cap: $53.30B

About MetLife

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, it provides fixed, indexed-linked, and variable annuities; pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services. MetLife, Inc. was incorporated in 1999 and is based in New York, New York.

MetLife Bull Case

Here are some ways that investors could benefit from investing in MetLife, Inc.:

  • The current stock price is around $78.61, which may present a buying opportunity for investors looking for value.
  • MetLife, Inc. has a strong market capitalization of approximately $52.77 billion, indicating a solid position in the financial services sector.
  • The company recently reported a quarterly revenue increase of 15.6% compared to the same quarter last year, showcasing robust growth potential.
  • MetLife, Inc. has initiated a stock buyback plan allowing for the repurchase of up to $3.00 billion in shares, which often signals that the company believes its stock is undervalued.
  • The firm has a consensus rating of "Moderate Buy" from analysts, suggesting positive sentiment and potential for price appreciation.

MetLife Bear Case

Investors should be bearish about investing in MetLife, Inc. for these reasons:

  • Recent earnings per share (EPS) of $1.96 fell short of the consensus estimate of $2.00, indicating potential challenges in meeting market expectations.
  • Two Sigma Investments LP recently reduced its holdings in MetLife, Inc. by 36.1%, which may reflect a lack of confidence from institutional investors.
  • The company has a relatively low quick ratio of 0.16, suggesting potential liquidity issues in meeting short-term obligations.
  • Analysts have mixed opinions, with some downgrading their ratings, which could indicate uncertainty about the company's future performance.
  • The stock has a beta of 0.85, indicating lower volatility compared to the market, which may limit potential high returns for aggressive investors.
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