Here's Why Investors Should Retain MetLife Stock for Now

MetLife, Inc. MET primarily provides protection and investment products to a range of individual and institutional customers. Beyond offering individual annuities, insurance and investment products, the company delivers group insurance, as well as retirement and savings products and services. In the past six months, MET shares have grown 0.9%, underperforming the industry’s 4.4% rise.MetLife, an insurance-based global financial services company with a market capitalization of $53.4 billion, is well-poised to grow on the back of higher premiums, cost-cutting efforts, cash generation ability, and acquisitions and partnerships. Its forward P/E of 8.09X is lower than the industry average of 9.28X. The company has a Value Score of A.Courtesy of solid prospects, MET currently carries a Zacks Rank #3 (Hold).Where Do Estimates for MET Stand?The Zacks Consensus Estimate for MetLife’s 2025 earnings is pegged at $8.71 per share, indicating a 7.4% year-over-year rise, which has been revised upward over the past seven days. Furthermore, the consensus mark for revenues is pegged at $79.1 billion for 2025, implying 8.3% year-over-year rise. It beat earnings estimates in one of the past four quarters and missed three times.MetLife, Inc. Price, Consensus and EPS Surprise  MetLife, Inc. price-consensus-eps-surprise-chart | MetLife, Inc. QuoteMET’s Growth DriversMetLife has seen a steady recovery in its premiums, supported by its broad product portfolio, customized insurance solutions and long-standing relationships with large corporate clients and payers, which ensure steady business volumes. Its total premium rose 2.4% year over year in the first nine months of 2025, driven by strong performances in the Group Benefits, Asia and EMEA segments.The company’s emphasis on streamlining operations, acquisitions and collaborations is expected to support sustainable growth. Key initiatives include the launch of Chariot Re and broadening digital collaborations like Xcelerator in Latin America. It is focusing on the acquisition of PineBridge Investments to bolster investment management capabilities.MetLife’s growth strategy focuses on steady, high-quality expansion rather than aggressive risk-taking. The company is scaling capital-efficient businesses, deepening its retirement and protection offerings, and using technology and data-led tools to improve margins while supporting consistent earnings growth across regions.Cost-saving initiatives have driven significant operational efficiency at MetLife. Under the New Frontier strategy 2025, the company aims for a 100-bps reduction in unit costs over five years by streamlining operations, expanding high-growth segments and accelerating asset management.MetLife’s robust liquidity position, evidenced by $20.2 billion in cash and cash equivalents as of Sept. 30, 2025, far exceeds its short-term debt of $378 million. This financial strength supports shareholder returns through share repurchases and dividend payouts. From the start of 2025 to October, the company bought back common shares worth $2.6 million. Its dividend yield of 2.8% remains higher than the industry’s average of 2.2%.MET: Risks to WatchThere are some factors that investors should keep a careful eye on.MetLife's investment income has been under pressure in recent years. After rising 25% in 2021 on the back of strong private equity returns, the metric declined nearly 26% in 2022 amid a weaker real estate equity market. Despite the high-interest-rate environment, variable investment income fell sharply 72.9% in 2023. In 2024, it totaled $1 billion, falling short of the company’s $1.5-billion target. MetLife expects pre-tax variable investment income to reach $1.7 billion in 2025. Notably, the metric came in at $1 billion in the first nine months of 2025.The company’s return on invested capital (ROIC) stands at 1.8%, trailing the industry average of 2.1%. This suggests weaker capital efficiency and raises concerns about the company's ability to generate sufficient returns from its deployed resources.Key PicksSome better-ranked stocks in the broader finance space are Markel Group Inc. MKL, Heritage Insurance Holdings Inc. HRTG and Hamilton Insurance Group, Ltd. HG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Markel Group’s current-year earnings of $105.42 per share has witnessed one upward revision in the past seven days against none in the opposite direction. Markel Group beat earnings estimates in the trailing four quarters, the average surprise being 19.9%. The consensus estimate for current-year revenues is pegged at $15.3 billion, implying 3.5% year-over-year growth.The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $5.14 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in the trailing four quarters, the average surprise being 100.1%. The consensus estimate for current-year revenues is pegged at $844.6 million, calling for 3.4% year-over-year growth.The Zacks Consensus Estimate for Hamilton Insurance Group’s current-year earnings is pegged at $3.90 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Hamilton Insurance Group beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 289.1%. The consensus estimate for current-year revenues is pegged at $2.8 billion, calling for 20.8% year-over-year growth.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MetLife, Inc. (MET): Free Stock Analysis Report Markel Group Inc. (MKL): Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report Hamilton Insurance Group, Ltd. (HG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks