Brighthouse Financial, Inc. BHF has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of April 2, 2025, was $59.78, down 6.7% from its 52-week high of $64.12.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
BHF Trading Above 50-Day Moving Average
Zacks Investment Research
Image Source: Zacks Investment Research
With a market capitalization of $3.47 billion, the average volume of shares traded in the last three months was 0.7 million.
BHF is an Outperformer
Shares of Brighthouse Financial have gained 24.5% year to date against the Zacks S&P 500 composite’s decline of 4.7%. The stock has outperformed its industry’s growth of 1.2% and the Finance sector’s return of 2.4%.
BHF Outperforms Industry, Sector & S&P YTD
Zacks Investment Research
Image Source: Zacks Investment Research
BHF’s Encouraging Growth Projection
The Zacks Consensus Estimate for Brighthouse Financial’s 2025 earnings per share indicates a year-over-year increase of 3.8%. The consensus estimate for revenues is pegged at $9.15 billion, implying a year-over-year improvement of 4.9%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 12.1% and 2.4%, respectively, from the corresponding 2024 estimates.
Earnings have grown 16.5% in the past five years, better than the industry average of 7.8%. BHF has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
BHF beat earnings estimates in three of the past four quarters and missed in one, with an average surprise of 14.04%.
Mixed Analyst Sentiment on BHF
Four of the six analysts covering the stock has raised estimates for 2025 while one has lowered the same over the past 60 days. For 2025, three of the six analysts have raised estimates while two have lowered estimates over the same time frame.
The Zacks Consensus Estimate for 2025 and 2026 earnings has moved 0.5% and 0.3% north, respectively, in the past 60 days, reflecting analysts’ optimism.
Attractive Valuation
The company’s shares are trading at a price-to-earnings multiple of 2.84, lower than the industry average of 7.96. The life insurer has a Value Score of B.
BHF is also cheaper compared with Reinsurance Group of America, Incorporated RGA, Sun Life Financial Inc. SLF and ManulifeFinancial Corp MFC.
Brighthouse Financial’s Return on Capital
BHF’s trailing 12-month return on equity is 26.94%, ahead of the industry average of 15.35%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.
Factors Acting in Favor of BHF
Brighthouse Financial is one of the largest providers of life insurance products in the United States. Given the expansive and compelling suite of life products, the company should benefit from the growing individual insurance market. The insurer remains focused on ramping up sales of life insurance products and expanding its distribution network, aiming to become a premier player in the industry.
BHF remained focused on enhancing its product portfolio with the launch of Shield Level Pay Plus, which is an addition to the suite of Shield Annuities. Strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product boosted the Annuity sales. Fixed deferred annuities also contributed to the growth. Improved underwriting margin and net investment income should contribute to higher Life insurance sales.
Brighthouse Financial should benefit from the growing individual insurance market. BHF remains focused on ramping up new sales of life insurance products, strengthening annuity products and expanding its distribution network, aiming to become a premier player in the industry. Strong Shield Level Annuity sales and higher fixed indexed annuity sales from the recently launched SecureKey product contributed to higher Annuity sales. Higher underwriting margins and net investment income boosted Life insurance sales. Execution of the life insurance strategy, including the addition of new distribution partners and wholesalers, is expected to drive growth.
Net investment income has been exhibiting an improving trend over the past few quarters. Riding on alternative investment income, asset growth and higher interest rates, the insurer expects the metric to improve in the future. Given a well-diversified and high-quality portfolio as well as a conservative investment strategy, we expect the metric to improve in the future.
Brighthouse Financial continued to focus on maintaining the strength of the balance sheet. Given enhanced financial strength and flexibility, the company remains committed to returning capital to shareholders and intends to maintain an opportunistic share repurchase program to create significant value for them.
Conclusion
Higher annuity and life insurance sales, high-quality portfolio, financial flexibility and effective capital deployment poise the life insurer well for growth. The stock also has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Coupled with the positives, higher return on capital as well as affordability of shares, it is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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