MetLife's (MET)
performance over the past year hasn't been all that good, but it has at
least been better than that of many of its peers. Although MetLife has
done a lot to clean up and improve its business, the company still has a
track record of inconsistent results (often punctuated by large
charges) and headwinds like lower returns on equity from its run-off
business and spread compression in its U.S. retirement business.
I
think expectations for MetLife are low and that the shares could be
positioned to outperform as a result. The company's earnings growth
outlook is rather modest, and that is a concern, but I do believe book
value growth should improve from here and exceed core earnings growth.
If and as that happens, the multiple should expand and MetLife should
get more of its due, but investors should appreciate that this name is
highly likely to be more tortoise than hare.
Read more here:
MetLife Moving Past Some Self-Inflicted Challenges And Toward Unlocking Value
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