VOYA Stock Trading at Discount to Industry at 0.98X: Time to Hold?

Core Insights - Voya Financial, Inc. (VOYA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-book value of 0.98X, lower than the industry average of 1.89X and the Finance sector's 4.24X [2] - The company has a market capitalization of $6.71 billion and an average trading volume of 0.7 million shares over the last three months [2] Valuation Comparison - Voya Financial is attractively valued compared to competitors such as Primerica, Inc. (PRI), Manulife Financial Corp. (MFC), and Sun Life Financial Inc. (SLF) [3] Earnings Growth - Earnings for Voya Financial grew by 12.2% over the last five years, surpassing the industry average of 7.8% [4] - The company has consistently beaten earnings estimates, with an average surprise of 42.92% over the last four quarters [4] - Year-to-date, Voya Financial shares have increased by 1.2%, while the industry has grown by 4.5% [4] Future Projections - The Zacks Consensus Estimate for Voya Financial's 2025 earnings per share indicates a year-over-year increase of 46.5%, with revenues expected to reach $1.34 billion, reflecting a 24.6% improvement [5] - Projections for 2026 show earnings per share and revenues increasing by 12.2% and 3.6%, respectively, from 2025 estimates [5] Growth Drivers - Voya's growth is supported by strong performance in its Retirement, Investment Management, and Employee Benefits segments [8] - The Retirement segment benefits from onboarded assets, favorable markets, and higher investment income [11] - The Investment Management segment is expected to gain from higher capital returns and fee revenues [12] - A strategic partnership with Allianz Global Investors is enhancing Voya's Investment Management capabilities [13] - The Employee Benefits segment is likely to improve due to lower claim developments and disciplined management of expenses [14] Financial Strength - Voya Financial generated over $0.2 billion of excess capital in Q3 2025, representing approximately 90% of after-tax adjusted operating earnings [15] - The company ended Q3 2025 with a strong balance sheet and approximately $350 million of excess capital, with an estimated combined RBC ratio of 407% [15] Capital Deployment - Voya plans to return between $100 million and $150 million in quarterly dividends and share repurchases throughout 2026, subject to market conditions [16] - The company has remaining share repurchase authorization of $661 million as of September 30, 2025 [16] Analyst Sentiment - Analysts have raised estimates for Voya Financial, with the consensus for 2025 and 2026 earnings moving up by 3% and 0.09%, respectively, in the last 60 days [9] Overall Positioning - Voya Financial is well-positioned for growth due to improved investment income, favorable market conditions, and strategic partnerships [19] - The company is expected to benefit from its strong dividend history, solid growth projections, and attractive valuations [20]