VOYA Stock Trading at a Discount to Industry at 1.12X: Time to Buy?

Core Insights - Voya Financial, Inc. (VOYA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-earnings multiple of 1.12X, lower than the industry average of 1.92X, the Finance sector's 4.17X, and the Zacks S&P 500 Composite's 8.58X [1] - The company has a market capitalization of $7.10 billion and has been trading above its 200-day simple moving average, indicating a short-term bullish trend [2] - Voya Financial's shares have gained 7% year-to-date, outperforming the industry's growth of 0.5% [3] Growth Projections - The Zacks Consensus Estimate for Voya Financial's 2025 earnings per share indicates a year-over-year increase of 42.7%, with revenues expected to reach $1.29 billion, implying a 20.2% year-over-year improvement [4] - For 2026, the consensus estimates for earnings per share and revenues indicate increases of 16% and 8.3%, respectively, from the 2025 estimates [4] Capital Generation and Strategic Partnerships - Voya expects excess capital generation to rise by $100 million in 2025, driven by strategic partnerships and strong underlying business performance [7][14] - The partnership with Allianz Global Investors has added scale, diversification, and growth potential to Voya's Investment Management segment [7][12] Segment Performance - Voya's earnings have grown 12.2% over the past five years, outperforming the industry average of 7.8%, with a long-term earnings growth rate expected at 15.3% [8] - The Wealth Solutions segment is experiencing significant growth due to improved business results, higher surplus income, and lower administrative expenses [11] - The Investment Management segment is benefiting from higher investment capital returns and improved fee revenues [12] - The Health Solutions segment is expected to grow across all product lines with favorable retention [13] Analyst Sentiment - Three out of five analysts covering Voya have raised their estimates for 2025, and four analysts have raised estimates for 2026 in the past 30 days, leading to a 0.8% and 1.2% increase in the Zacks Consensus Estimates for 2025 and 2026, respectively [9] Financial Flexibility and Shareholder Value - Voya Financial's capital levels remain strong, with an expectation of improved excess capital generation and high free cash flow conversion [14] - The company increased its quarterly dividend by 12.5% starting in Q3 2024 and generated approximately $200 million of excess capital in the quarter [15] - Voya plans to resume share repurchases targeting $200 million in the second half of 2025 [15] Conclusion - Voya Financial is well-positioned for growth due to improved investment income, higher average equity markets, positive net flows, and strategic partnerships, making it an attractive option for potential investors [16][17]