MetLife Shares Underperform Despite Positive Earnings Signals

With a market cap of $52.3 billion, MetLife, Inc. (MET) operates as a global financial services company. It offers a range of insurance, annuities, employee benefits, and asset management solutions. The company serves individuals and institutions worldwide, spanning six operational segments with diverse protection and investment products.

Market Performance Overview

Over the past 52 weeks, MetLife’s shares have lagged behind the overall market. During this period, MET has increased by 7.3%, while the broader S&P 500 Index ($SPX) has seen an 8.6% rally. Year-to-date, MetLife shares are down 4.9%, contrasting with the S&P 500’s 3.8% decline.

Comparison with Financial Sector

Additionally, MetLife has not kept up with the Financial Select Sector SPDR Fund’s (XLF) performance, which has returned 19.7% over the same 52-week period.

Earnings Report Insights

On April 30, MetLife reported weaker-than-expected Q1 2025 adjusted EPS at $1.96. However, shares experienced a slight recovery the following day. Adjusted premiums, fees, and other revenues increased 16.5% year-over-year to $13.6 billion, while adjusted net investment income rose 3% to $5.21 billion. The company also announced a $3 billion share buyback program and a $10 billion reinsurance deal with Talcott Financial Group. These actions are intended to enhance capital efficiency and reduce risk, which are typically viewed as positive for shareholders.

Future Outlook and Analyst Ratings

Looking ahead, analysts project that MetLife’s adjusted EPS will grow 12.3% year-over-year to $9.11 for the fiscal year ending December 2025. The company’s history of earnings surprises is varied—it has beaten consensus estimates just once in the last four quarters, missing on three occasions.

Among the 18 analysts covering MetLife, the current consensus rating is a “Strong Buy,” consisting of 13 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.” This outlook is slightly more positive than three months ago when there were only 12 “Strong Buy” ratings.

On May 6, Wells Fargo updated its price target for MetLife to $94 and maintained an “Overweight” rating. As of this writing, MET trades below the average price target of $92.69. The highest price target of $110 suggests a potential upside of 41.3% from current levels.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.