Markets
MET

MetLife reports Q4 numbers February 13

What's Happening

Life insurance provider MetLife ( MET ) is expected to report its fourth-quarter results after the market close February 13. Analysts forecast earnings of $1.10 per share for the quarter, down from $1.28 during the same period last year. MET shares took a big hit the overall market sell off over the last week, and shares are currently down 12.2% on the year.

Technical Analysis

MET was recently trading at $44.04, down $11.87 from its 12-month high and just $0.40 above its 12-month low. Overall technical indicators for MET are bearish with a strong downward trend. The stock has recent support above $44.25, and recent resistance below $48.00. Of the 10 analysts who cover the stock, five rate it a "strong buy", one rates it a "buy", and four rate it a "hold". MET gets a score of 44 from InvestorsObserver's Stock Score Report.

Analyst's Thoughts

MetLife enjoyed strong gains during the latter part of 2017, but the stock hit resistance at the start of the year, and took a big nose dive when the overall market started to correct over the last week. Shares are now trading just above their 52-week low, and continue to look for a level of support. The sell-off started when the company delayed its quarterly report, stating that it needed time to revise some of its reserve estimates. The company also said that state and federal regulators were looking at the company's handling of reserve estimates. MetLife is adjusting its reserve estimates, following what it calls a " material weakness in internal control over financial reporting". The news rocked the stock, which is still in free fall. I would avoid any long unhedged positions ahead of the quarterly report, and would only assume such a position following the report as long as the revised numbers are good enough to bring buyers back into the stock. MET is a stock to avoid at this time.

Stock Only Trade

Bullish Trade

If you want a bullish hedged trade on the stock, consider a March 35/40 bull-put credit spread for a 30-cent credit. That's a potential 6.4% return (66.5% annualized*) and the stock would have to fall 8.5% to cause a problem.

Bearish Trade

If you want to take a bearish stance on the stock at this time, consider a March 42.50/47.50 bear-call credit spread for a $0.30 credit. That's a potential 6.4% return (66.5% annualized*) and the stock would have to rise 8.5% to cause a problem.

Covered Call Trade

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Originally published on InvestorsObserver.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MET

Other Topics

Options