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MetLife, Inc. (MET), headquartered in New York City, is a leader in insurance, employee benefits, and financial services. With a market cap of $50.07 billion, MetLife offers a comprehensive range of products, including life, dental, disability, accident insurance, and retirement and savings solutions. The company serves individual consumers, businesses, and institutional clients, providing the tools and resources to secure a more confident financial future.
MET has underperformed the broader market over the past year. The stock has gained 11.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21%. Also, in 2024, MET is up 7% compared to SPX's 13.9% gains on a YTD basis.
Narrowing the focus, MET’s underperformance is also evident compared to the iShares U.S. Insurance ETF (IAK). The exchange-traded fund has gained 31% over the past year. Also, the ETF’s 19.2% gains on a YTD basis beat the stock’s returns over the same time frame.
Following the Q2 earnings release on Jul. 31., MET shares fell over 1%. Its revenue of $18.68 billion surpassed the consensus estimates of $18.19 billion, and its adjusted EPS of $2.28 beat Wall Street expectations of $2.13.
For the current fiscal year, ending in December, analysts expect MET’s EPS to grow 19% to $8.72 on a diluted basis. The company's earnings surprise history is mixed. It surpassed or beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 15 analysts covering MET stock, the consensus rating is a “Strong Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”
On Aug. 1, Morgan Stanley (MS) analyst Bob Huang maintained a “Buy” rating on MetLife with a price target of $86, implying a potential upside of 21.4% from current levels.
The mean price target of $84.17 represents an 18.8% premium to MET’s current price levels. The Street-high price target of $96 suggests an upside potential of 35.5%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
