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Brighthouse Financial (BHF) is drawing fresh attention after recent share price moves, with the stock showing a mixed pattern over the past month and past 3 months that has some investors revisiting its fundamentals.
See our latest analysis for Brighthouse Financial.
At a share price of US$64.11, Brighthouse Financial has seen its 90 day share price return of 36.96% contrast with a relatively flat year to date move, while its 1 year total shareholder return of 26.50% and 5 year total shareholder return of 81.31% point to stronger gains over longer periods, suggesting momentum has recently been building after earlier softness.
If this kind of rebound has your attention, it may be a good moment to widen your search with fast growing stocks with high insider ownership for other ideas showing strong potential.
With Brighthouse Financial trading near its analyst price target and sitting on a very large modelled intrinsic discount, the key question is whether the market is missing something or already pricing in future growth.
Brighthouse Financial’s most followed narrative pegs fair value at about $65.50, only slightly above the last close at $64.11, which puts the current price very close to that central estimate.
The analysts have a consensus price target of $56.222 for Brighthouse Financial based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $72.0, and the most bearish reporting a price target of just $42.0.
There is a full playbook behind that $65.50 fair value, built on specific assumptions about revenue, profit margins, future earnings, and the discount rate. Curious which of those inputs does the heavy lifting in the model, and how they compare with the analyst range you just saw? The narrative lays out the exact path it is using to get from today’s $64.11 share price to that fair value mark.
Result: Fair Value of $65.50 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the narrative can quickly change if earnings stay volatile or if capital constraints and regulatory approvals around the Aquarian deal reduce the room for error.
Find out about the key risks to this Brighthouse Financial narrative.
If you see the story differently, or prefer to work from the raw numbers yourself, you can build a custom view in minutes with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Brighthouse Financial.
If Brighthouse Financial has sparked your interest, do not stop here. You could be skipping over other opportunities that fit your style even better.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BHF.
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