MetLife is the largest and most successful life insurance company in the United States. They are still trading within a decent range, only at 8x forward earnings. After using a historical DCF they are fairly valued at around $47-49, but that essentially disregards future improvement for revenue or EPS, which should occur in coming quarters. Therefore I have a price target closer to the high 50s.
In the chart above I outlined support (green), resistance (red), and relative interest (blue). What I mean by relative interest is that if MET trades below the blue line it may be purchase worthy, or at least taking a look at. Stochastics RSI is also starting to bottom out around at the 5-12 area. The only risk that seems to be highly self-evident is if the market continues to sell-off, and potentially leads into a correction. That is one glaring loop-hole, but I think at $49 and under it is a bargain. If a correction DOES occur, it may drop as low as $40-45 when considering beta.
I might enter a small position in MetLife on Monday and add more the further it drops. I would like it closer to $48, but we'll see how the market moves. Don't bet the house, be cautious, but don't be afraid. Thanks for reading.
In the chart above I outlined support (green), resistance (red), and relative interest (blue). What I mean by relative interest is that if MET trades below the blue line it may be purchase worthy, or at least taking a look at. Stochastics RSI is also starting to bottom out around at the 5-12 area. The only risk that seems to be highly self-evident is if the market continues to sell-off, and potentially leads into a correction. That is one glaring loop-hole, but I think at $49 and under it is a bargain. If a correction DOES occur, it may drop as low as $40-45 when considering beta.
I might enter a small position in MetLife on Monday and add more the further it drops. I would like it closer to $48, but we'll see how the market moves. Don't bet the house, be cautious, but don't be afraid. Thanks for reading.