After opening Thursday at around $17.05, Manulife Financial Corporation (NYSE:MFC) stock surged to as high as $17.06. It then made a downturn, dipping as low as $16.81. Although the stock bounced a bit into the close, it finished the day at $16.85, down -0.22 points or -1.29 percent on the day. The final volume for the day was 2.054 million, which was less than its average volume. The firm is left with a market cap of $33 billion and now has 1.96 billion shares outstanding. Manulife Financial Corporation (MFC) stock has gained 5.58 percent of market value in 21 trading days.
MFC stock has a trailing 3-year beta of 1.36, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.61 a share in the trailing twelve months. The stock’s value has surged 18.75 percent year to date (YTD) against a decline of -9.46 percent in 12 month’s time. The company’s shares still trade -14.14 percent away from its 1-year high of $19.63 and 26.41 percent up from 52-week low of $13.33. The average consensus rating on the company is 1.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Manulife Financial Corporation (MFC) will probably climb 40.12 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $26.43-month high price target. This represents a whopping 56.85 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $20.27, which represents a return potential of 20.3 percent when compared to the closing price of the stock of $16.85 on Thursday, March 14. The lowest price target for the stock is $17.82 — slightly more than 5.76 percent from MFC’s current share price.
History has shown that shares in Manulife Financial Corporation have gone up on 21 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of MFC’s Q1 earnings on May 01. Analysts are forecasting revenue to suffer decline of -11.7 percent to $9.42B in the fiscal first quarter, while earnings are seen soaring by nearly 19.05 percent to $0.5 per share. It earned $0.48 per share, better than the $0.46, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $16.2B, worse than the $16.3B analysts expected. Earnings are estimated to increase by 78.2 percent this year, 7.62 percent next year and continue to increase by 8.82 percent annually for the next 5 years.
The stock is currently hovering around the first support level of $16.75. Below this, the next support is placed in the zone of $16.66. Till the time, the MFC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.93 on daily chart, which may remain a cause for concern. If the price breaks below $16.66 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17 mark may result into a pull-back move towards $17.16 level.
Shares of Manulife Financial Corporation (MFC) are trading at a P/E ratio of 13.86 times earnings reported for the past 12 months. The industry MFC operates in has an average P/E of 13.72. Its P/E ratio went as low as 12.36X and as high as 19.76 over the 5-year span.Further, it is sporting a 1.14 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.34.