The robust performance of Wealth Solutions, Investment Management, and Health Solutions positions VOYA for growth. Competent capital deployment, optimistic outlook, and attractive growth projections make VOYA a portfolio-worthy investment.
VOYA has a solid track record of surpassing earnings predictions over the past five quarters, with an average beat of 36.62 percent.
Zacks Rank and Price Returns
Voya Financial is now a #2 Zacks Rank stock (Buy). The stock has risen 9.2% year-to-date, outperforming the industry’s 3.9% and Financial sector’s 4.3% declines, respectively. The Zacks S&P 500 index has up 3.1% during the same time period.
Positive Growth Predictions
The Zacks Consensus Estimate for 2023 VOYA profits is $8.13 per share, representing a 7.3% rise on 6.9% higher revenues of $1.2 billion. The consensus estimate for 2024 profits is $9.18, indicating a 13% rise on revenues of $1.3 billion, up 4.4%.
Long-term profits growth is anticipated to be 14.1%, above the industry average of 11%.
Voya Financial remains committed to speeding expansion, relying on bolstering commercial momentum, fortifying existing alliances, and enhancing operational efficacy. The firm has surpassed its competitors in terms of organic growth and scale.
Strong performance in Wealth Solutions, Investment Management, and Health Solutions should continue to fuel expansion. They are high-growth, high-return, capital-light enterprises with a substantial footprint.
Voya Financial and Allianz Global Investors (AllianzGI) have signed a long-term strategic agreement that has increased Voya Investment Management’s scale and diversity. The deal is anticipated to provide 6-8% to Voya’s adjusted operating EPS in 2023. Furthermore, Voya IM’s adjusted operating margin is anticipated to rise to 29-31% in 2023 and 30-34% in 2024.
Voya could substantially diversify its asset management company, Voya Investment Management, and convert it into a worldwide supplier of investment solutions to customers across a variety of attractive asset classes and markets. With $90 billion in additional assets under management, the deal has also provided tremendous size to the organization. In addition, it has offered access to AllianzGI’s enormous worldwide network for the distribution of Voya’s investment strategies beyond the United States and Canada.
Health Solutions should continue to reap the benefits of market expansion in Stop Loss and Voluntary, competitive advantage, and digitization.
Efficient Deployment of Capital
Voya Financial utilizes its spare capital mostly to repurchase its own shares. In addition, the insurer is committed to maintaining a dividend return of at least 1%.
Upbeat 2024 Financial Objectives
Voya Financial has revealed its 2024 financial strategy. This premier health, wealth, and investment organization anticipates a 12-17% increase in yearly adjusted operating profits per share. Four to six percent increase in net revenue, margin expansion of one to two percent, and cautious capital management should help Voya Financial reach its objective. The growth rate is based on projected adjusted operating profits of almost $6.00 per share in 2021.
Voya Financial anticipates net annual revenue growth in the Wealth Solutions, Investment Management, and Health Solutions sectors of 2-4%, 7-10%, and 5-7%, respectively. The company’s cautious capital management entails achieving 90-100% free cash flow conversion over the next three years and an operational return on equity between 14-16%.
The price to book value ratio of VOYA shares is 1.1, which is lower than the industry average of 1.2. In addition, it has a B Value Score. This style score assists in locating the most desirable bargain stocks. Backtesting demonstrates that companies with a Value Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 provide superior returns.
Further Stocks to Consider
Brighthouse Financial BHF, Primerica Inc. PRI, and Sun Life Financial SLF are more top-performing equities in the life insurance market.
Brighthouse Financial’s average trailing-four-quarter earnings above expectations by 2.07%. To date this year, BHF has lost 18%.
The Zacks Consensus Estimate for BHF’s profits in 2023 and 2024 predicts a 33.5% and 11.5% year-over-year growth, respectively. The insurer has the highest Zacks Rank (Strong Buy). Here is the entire list of Zacks #1 Rank stocks for today.
Two of the previous four reported quarters for Primerica resulted in profit surprises, while the other two fell short. To date this year, PRI has lost 14.1%.
The Zacks Consensus Estimate for PRI’s profits in 2023 and 2024 implies respective increases of 29.4% and 11.6% over the prior year. The insurer has the highest Zacks Rank.
In each of the previous four quarters, Sun Life’s earnings have exceeded expectations by an average of 9.14 percent. Year to date, SLF has declined by 5.9%.
The Zacks Consensus Estimate for SLF’s profits in 2024 indicates an 8.1% year-over-year increase. The insurer is ranked second by Zacks.