On Jun 30, shares of Canadian life insurer
Sun Life Financial Inc.
) touched a 52-week high of $36.87. With about 0.16 million shares
exchanging hands in the last trading session, shares finally closed
at $36.71. The closing share price represents a strong one-year
return of 27.6%.
The rally came on the back of investors' optimism about the
company's consistent favorable performance.
Sun Life Financial delivered positive earnings surprises in the
last three quarters with an average beat of 14.8%. This Zacks Rank
#2 (Buy) company with market cap of $22.4 billion promises
long-term earnings growth expectation of 10.0%.
Sun Life Financial has been able to maintain its growth momentum by
taking a series of initiatives. Recently, the company made business
mix changes in its U.S. segment to reduce the equity market
exposure and limit its interest rate exposure.
Additionally, its Global Asset Management Business is witnessing
expanding asset base for several quarters and provides higher
return on equity with lower capital, and lower volatility. The
Canadian insurance company also implemented hedging techniques to
reduce earnings and capital sensitivity to interest rates and
Sun Life Financial also scores strong with the credit rating
agency. In May 2014, A.M. Best Co. reiterated the company's issuer
credit rating (ICR) of "a-", while maintaining the financial
strength rating (FSR) of A+ (Excellent) and ICR of "aa-" of its
subsidiaries. The ratings carry a stable outlook, reflecting the
company's strong business profile.
In the last reported quarter, Sun Life Financial performed strongly
on both lines. Operating earnings were up 10.8% year over year, led
by strong business growth, improving core earnings power and
continued execution of the company's four-pillar growth strategy.
Top-line growth was robust, with sales of life and health products
up 19% and wealth sales up 12%.
Over the past 60 days, the stock has witnessed upward revision in
earnings estimates, reflecting its consistent operating
performance. The Zacks Consensus Estimate for 2014 went up 3.1% to
$2.68 per share and 2.1% to $2.86 per share for 2015
Other Stocks to Consider
Other stocks from the same industry worth considering are
China Life Insurance Co. Ltd.
Lincoln National Corp.
Reinsurance Group of America Inc.
). All these stocks carry the same rank as Sun Life Financial.
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SUN LIFE FINL (SLF): Free Stock Analysis Report
LINCOLN NATL-IN (LNC): Free Stock Analysis
CHINA LIFE INS (LFC): Free Stock Analysis
REINSURANCE GRP (RGA): Free Stock Analysis
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