Shares of Manulife Financial Corporation (NYSE: MFC) closed at $28.87 on Thursday, near its 52-week high of $28.89. A strong-performing Asia business, expanding Wealth and Asset Management business and a solid capital position are driving the stock price higher.
The company is one of the three dominant life insurers within its domestic Canadian market and possesses rapidly growing operations in the United States and several Asian countries. Earnings grew 4.9% in the last five years, better than the industry average of 4.6%.
Shares have rallied 30.6% year to date, outperforming the industry's increase of 19%, the Finance sector's increase of 13.7% and the S&P 500 composite's rise of 17.7%.
MFC Outperforms Industry, Sector, S&P 500 YTD
Image Source: Zacks Investment Research
MFC shares are trading well above the 50-day moving average, indicating a bullish trend.
MFC's Return on Equity
Manulife's return on equity (ROE) for the trailing 12 months is 16.2%, better than the industry average of 15.5%. This reflects Manulife's efficiency in utilizing shareholders' funds. It expects to generate a ROE of more than 18% by 2027.
Optimistic Growth Outlook
The Zacks Consensus Estimate for 2024 and 2025 earnings per share is pegged at $2.72 and $2.86, respectively, suggesting an increase of 5.8% and 5.2% year over ...
