Voya Financial Trades Above 50-Day SMA: Time to Hold VOYA Stock?

Core Viewpoint - Voya Financial, Inc. (VOYA) is experiencing a short-term bullish trend, trading above its 50-day simple moving average, despite a 20.8% decline from its 52-week high. The company shows strong growth projections and attractive valuations, making it a stock worth holding. Group 1: Price Movement and Valuation - As of May 22, 2025, VOYA's share price was $66.72, down from a 52-week high of $84.30 [1] - The company has a market capitalization of $6.42 billion and an average trading volume of 1.07 million shares over the last three months [4] - VOYA shares are trading at a price-to-book multiple of 1.04X, significantly lower than the industry average of 1.9X, the Finance sector's 4.23X, and the S&P 500 Composite's 7.87X [5] Group 2: Growth Projections - The Zacks Consensus Estimate for VOYA's 2025 earnings per share indicates a year-over-year increase of 33.8%, with revenues expected to reach $1.18 billion, reflecting a 9.6% improvement [7] - For 2026, earnings per share and revenues are projected to increase by 19.5% and 11.3%, respectively, compared to 2025 estimates [9] - VOYA's earnings have grown by 12.2% over the past five years, outperforming the industry average of 7.8% [9] Group 3: Analyst Sentiment - Five out of six analysts covering VOYA have raised their estimates for 2025, with the Zacks Consensus Estimate for 2025 and 2026 increasing by 4.8% and 2.9%, respectively, in the last 30 days [10] Group 4: Segment Performance - VOYA's earnings are driven by strong performances in Wealth Solutions, Investment Management, and Health Solutions, which are characterized by higher growth and returns [14] - The Wealth Solutions segment is experiencing growth due to improved investment income and lower administrative expenses [15] - The Investment Management segment is expected to benefit from higher investment capital returns and improved fee revenues [16] Group 5: Capital Generation and Deployment - VOYA anticipates generating approximately $750 million of excess capital in 2025, with an expected increase of $100 million driven by strategic actions [18] - In Q1 2025, VOYA generated around $200 million of excess capital, returning $43 million to shareholders through dividends and retiring $400 million of senior notes [19] Group 6: Conclusion - Voya Financial is well-positioned for growth due to improved investment income, strategic partnerships, and effective capital deployment [20] - The company's solid growth projections, optimistic analyst sentiment, and attractive valuations further support its investment potential [21]