BHF Stock Trades Above 50-Day SMA: What Should Investors Do?

Core Viewpoint - Brighthouse Financial, Inc. (BHF) is experiencing a short-term bullish trend as it trades above its 50-day simple moving average, despite a recent decline in share price from its 52-week high [1][3]. Company Performance - As of April 2, 2025, BHF's share price was $59.78, down 6.7% from its 52-week high of $64.12 [1]. - The company has a market capitalization of $3.47 billion, with an average trading volume of 0.7 million shares over the last three months [4]. - Year-to-date, BHF shares have gained 24.5%, outperforming the Zacks S&P 500 composite, which has declined by 4.7%, and the finance sector's return of 2.4% [5][7]. Growth Projections - The Zacks Consensus Estimate for BHF's 2025 earnings per share indicates a year-over-year increase of 3.8%, with revenues projected at $9.15 billion, reflecting a 4.9% improvement [8]. - For 2026, earnings per share and revenues are expected to increase by 12.1% and 2.4%, respectively, compared to 2024 estimates [8]. Earnings and Analyst Sentiment - BHF's earnings have grown by 16.5% over the past five years, surpassing the industry average of 7.8% [9]. - The company has an impressive Growth Score of B and has beaten earnings estimates in three of the past four quarters, with an average surprise of 14.04% [9]. - Mixed analyst sentiment exists, with four of six analysts raising estimates for 2025, while the Zacks Consensus Estimate for 2025 and 2026 earnings has increased by 0.5% and 0.3%, respectively, over the past 60 days [10]. Valuation and Profitability - BHF's shares are trading at a price-to-earnings multiple of 2.84, significantly lower than the industry average of 7.96, indicating attractive valuation [11]. - The company's trailing 12-month return on equity is 26.94%, well above the industry average of 15.35%, reflecting effective utilization of shareholder capital [12]. Strategic Focus - BHF is one of the largest providers of life insurance products in the U.S. and aims to benefit from the growing individual insurance market by enhancing its product portfolio and expanding its distribution network [13][15]. - The company has launched new products, such as Shield Level Pay Plus and SecureKey, which have contributed to increased annuity sales [14][15]. - Improved underwriting margins and net investment income are expected to drive higher life insurance sales [14][16]. Financial Strength and Capital Deployment - BHF is focused on maintaining a strong balance sheet and has committed to returning capital to shareholders through an opportunistic share repurchase program [17]. - The company anticipates continued improvement in net investment income due to a well-diversified portfolio and a conservative investment strategy [16]. Conclusion - Higher annuity and life insurance sales, a high-quality portfolio, financial flexibility, and effective capital deployment position BHF well for future growth [18]. - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [18].