Voya Financial Trades Above 50-Day SMA: How to Play the Stock?

Core Insights - Voya Financial, Inc. (VOYA) is currently experiencing a short-term bullish trend as its shares are trading above the 50-day simple moving average (SMA) [1] - The company is trading at a discount compared to the Zacks Life Insurance industry, with a price-to-book value of 1.17X, lower than the industry average of 1.93X [2] - Voya Financial has a market capitalization of $7.4 billion and a Value Score of B, indicating potential investment attractiveness [2] Price Performance - Year-to-date, Voya Financial shares have gained 12.1%, outperforming the industry growth of 1.2%, but underperforming the Finance sector and the Zacks S&P 500 Composite, which increased by 13.3% and 12.7%, respectively [4] Financial Projections - The Zacks Consensus Estimate for VOYA's 2025 earnings per share is $8.65, with revenues projected at $1.3 billion [9] - For 2026, earnings per share and revenues are expected to rise by 16.5% and 10%, respectively, from the 2025 estimates [9] - The expected long-term earnings growth rate for Voya Financial is 14.2% [9] Analyst Sentiment - Analyst sentiment is optimistic, with the Zacks Consensus Estimate for 2025 and 2026 earnings having increased by 0.9% each in the past 30 days [10] Growth Drivers - Voya Financial is focusing on growth through automation, cost savings, and an expanding distribution network, which are expected to enhance earnings potential [14] - The acquisition of OneAmerica Financial has strengthened Voya's Wealth Solutions retirement business, adding significant assets and expected revenues [17] - The long-term partnership with Allianz Global Investors has broadened Voya's global presence and diversified its Investment Management business [18] Financial Health - Voya Financial has made progress in improving its financial profile, reducing long-term debt by over 20% to $1.6 billion as of June 30, 2025, and improving its financial leverage ratio to 27.4% [19] Shareholder Value - The company has emphasized shareholder value creation, increasing its dividend seven times over the past five years, resulting in a five-year annualized growth rate of 34.7% [20] Conclusion - Voya Financial is building momentum through distribution growth, automation, and strategic acquisitions, although rising debt levels and returns lagging behind peers remain concerns [21]