Buy, Sell or Hold: Manulife Financial (MFC-T) — Stock Predictions at Stockchase

TSE:MFC

22.43

0.20 (0.88%) 1d

Showing 1 to 15 of 2,098 entries

BUY

Insurance companies usually benefit from rising rates. Global company. Financials are attractive, as he expects the yield curve to normalize over the next year or two.

insurance

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TOP PICK

Stockchase Research Editor: Michael O'Reilly With a market cap of $50 billion, MFC is one of Canada's largest financial services firms. It is in a space that tends to benefit from rising interest rates and we reiterate it as TOP PICK. It trades right at book value and at 7x earnings, it is good value here. The dividend was recently bumped up over 17% and is backed by a payout ratio under 35% of cash flow. We are recommend to slide the stop (down from $24.50) to $21.50, to accommodate current market uncertainty, looking to achieve $30 -- upside potential over 20%. Yield 5.19% (Analysts’ price target is $30.00)

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DON'T BUY

They take on too much risk and the dividend doesn't make him buy.

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PAST TOP PICK

(A Top Pick Apr 21/21, Down 1%) At close to book value, better priced today than SLF, which also has a lower yield. Large exposure to Asia's continuing Covid situation may explain lagging performance. Extremely well structured and financed. No hesitation in recommending it long term. Yield slightly over 5%.

insurance

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TOP PICK

Stockchase Research Editor: Michael O'Reilly As one of Canada's largest insurers, with rapidly growing operations in the US and Asia, we again reiterate MFC as a TOP PICK. Recently reported earnings again beat analyst expectations and support a respectable 14% ROE, which helps support a great dividend yield that employs less than 35% of cash flow. It trades at 8x earnings, compared to peers at 33x. We recommend trailing up the stop (from $21.00) to $24.50, looking to achieve 31.50 -- 15% upside potential. Yield 4.84% (Analysts’ price target is $31.33)

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BUY

Great Asian franchise. Asset management business has been tough, decreasing margins. Will continue to do better, especially as we see less volatility. Worth owning here. Nice yield of almost 5%, not trading at a huge multiple at 1.2x book.

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WEAK BUY

A pocket of value in the sector, life insurance is the cheapest in the group. Lifecos definitely have room for multiple expansion and earnings growth. His preferred name is GWO, with a more mature M&A market focus. MFC is more focused on EM.

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DON'T BUY

It's so tough here. He ranks it negatively. The financial health of MFC is poor. If it breaks below $25.43, watch out. It yield 4.9%, but he is worried about financials trading at these levels. There's something wrong with their balance sheet, but he hasn't done a deep dive on it. Sell if it falls to $24.50. Doesn't see an upside here, just the dividend.

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PARTIAL SELL

A stellar performance in the last 6 months with strong dividend growth in the past year. But slower economic activity in Asia is a headwind. Take profits or sell, then re-enter in the summer on a 10-15% pullback. He likes the dividend.

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COMMENT

Hasn't been a growth story. When an insurance company writes an insurance policy, they have a long term liability. They need to earn a rate of return. 5-6 years, there hasn't been growth. Likes it and owns it below $20-$25. Does not want to own it around $30.

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BUY on WEAKNESS

Defensive, modest beats, clean last quarter, doing well in Asia, incredibly cheap, decent growth rate. Sort of like that cough syrup commercial, "You might not like it, but it works." Has severely underperformed. Accounting standards headwinds. Trades at 6x with a 10% growth rate. Whippy stock, you can probably purchase under $25 or 24.50.

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SELL ON STRENGTH

Allan Tong’s Discover Picks MFC pays a safe dividend, too (at a 32.98% payout ratio), but it’s even higher at 5.16%. Mind you, the street has a bullish forward PE of 11.91x on SLF, so the street believes in the company’s growth. Profit margins of both insurers are virtually the same around 11.5%, but MFC trades at a lower PE of 7.3x. However, MFC shares can never breach $28, despite consistent price targets as high as $30. Why, I don’t know, but the charts are there to see. Read 4 Promising TSX Stocks for our full analysis.

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HOLD

Good company, nice dividend. Asian franchise is really strong, which will add growth over the long term, but is adding volatility right now. Not paying a lot for it, either on PE or price to book. Nice story to have.

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HOLD

Sell MFC and buy BNS? Is watching the impact of Hong Kong on MFC. She prefers owning Canadian banks to lifecos. MFC trades at a discount to the group. Manager continue to rectify past company mistakes. The dividend is safe. She does own BNS.

insurance

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TOP PICK

Stockchase Research Editor: Michael O’Reilly As a quality Canadian company with growing sales volumes, favourable interest rates, and disciplined expense management, we reiterate MFC as a TOP PICK. A favorable product mix, higher margins in annuities and international business are expected to drive future value. It pays a great dividend, backed by a payout ratio under 35% of cash flow. We continue to recommend a stop at $21, looking to achieve $30.50 — upside potential over 23%. Yield 5.2% (Analysts’ price target is $30.31)

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Showing 1 to 15 of 2,098 entries

Manulife Financial(MFC-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 38

Neutral - Hold Signals / Votes : 8

Bearish - Sell Signals / Votes : 12

Total Signals / Votes : 58

Stockchase rating for Manulife Financial is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Manulife Financial(MFC-T) Frequently Asked Questions

What is Manulife Financial stock symbol?

Manulife Financial is a Canadian stock, trading under the symbol MFC-T on the Toronto Stock Exchange (MFC-CT). It is usually referred to as TSX:MFC or MFC-T

Is Manulife Financial a buy or a sell?

In the last year, 58 stock analysts published opinions about MFC-T. 38 analysts recommended to BUY the stock. 12 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Manulife Financial.

Is Manulife Financial a good investment or a top pick?

Manulife Financial was recommended as a Top Pick by on . Read the latest stock experts ratings for Manulife Financial.

Why is Manulife Financial stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Manulife Financial worth watching?

58 stock analysts on Stockchase covered Manulife Financial In the last year. It is a trending stock that is worth watching.

What is Manulife Financial stock price?

On 2022-05-20, Manulife Financial (MFC-T) stock closed at a price of $22.43.

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