Summary
- Genworth Financial (GNW) is rated a buy, supported by attractive valuation, strong technicals, and stable profitability metrics despite a soft Q3 earnings report.
- GNW’s mortgage-insurance subsidiary Enact drives positive cash flow, while long-term-care insurance remains a risk due to rising claims and aging policy blocks.
- Shares are in a strong uptrend, with technical support near $6.60 and an upside price target of $10 based on recent consolidation patterns.
- While forward guidance is limited, GNW is positioned for potential EPS growth, and management’s strategic plan focuses on value creation and sustainable growth.
J Studios/DigitalVision via Getty Images
Insurance stocks snapp…
Summary
- Genworth Financial (GNW) is rated a buy, supported by attractive valuation, strong technicals, and stable profitability metrics despite a soft Q3 earnings report.
- GNW’s mortgage-insurance subsidiary Enact drives positive cash flow, while long-term-care insurance remains a risk due to rising claims and aging policy blocks.
- Shares are in a strong uptrend, with technical support near $6.60 and an upside price target of $10 based on recent consolidation patterns.
- While forward guidance is limited, GNW is positioned for potential EPS growth, and management’s strategic plan focuses on value creation and sustainable growth.
J Studios/DigitalVision via Getty Images
Insurance stocks snapped back last week, while the broader market retreated. The State Street SPDR S&P Insurance ETF (KIE) rose a handful of percentage points, while the S&P 500 and Nasdaq gave back some
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