Voya Financial Trades Above 50-Day SMA: How to Play the Stock?

Voya Financial, Inc. VOYA has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend.

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.

VOYA Shares Are Affordable

Shares of  Voya Financialare trading at a discount compared to the Zacks Life Insurance industry. Its price-to-book value of 1.17X is lower than the industry average of 1.93X.

The insurer has a market capitalization of $7.4 billion. The average volume of shares traded in the last three months was 0.8 million. The insurer has a Value Score of B.

However, shares of Primerica, Inc. PRI and Sun Life Financial Inc. SLF are trading at a multiple higher than the industry average, while shares of Brighthouse Financial, Inc. BHF are trading at a discount.

Price Performance of VOYA

Shares of Voya Financial have gained 12.1% in the year-to-date period, outperforming its industry’s 1.2% growth,while underperforming the Finance sector and the Zacks S&P 500 Composite’s increase of 13.3% and 12.7%, respectively.

Projections for VOYA

The Zacks Consensus Estimate for VOYA’s 2025 earnings per share is pegged at $8.65, and the consensus estimate for revenues is pegged at $1.3 billion. The consensus estimate for 2026 earnings per share and revenues indicates a rise of 16.5% and 10%, respectively, from the corresponding 2025 estimates. The expected long-term earnings growth rate is 14.2%.

Optimistic Analyst Sentiment on VOYA

The Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 0.9% each in the past 30 days, respectively.

Average Target Price for VOYA Suggests Upside

Based on short-term price targets offered by 12 analysts, the Zacks average price target is $83.17 per share. The average indicates a potential 8.5% upside from the last closing price.

Key Points to Note for VOYA

VoyaFinancial is driving growth through organic drivers, including an expanding distribution network and enhanced efficiency from automation. These efforts, combined with disciplined cost savings and capital deployment, are strengthening earnings potential. Strategic acquisitions then act as an added layer, supporting its long-term performance.

Voya’s earnings are driven by solid performance across Wealth Solutions, Investment Management and Health Solutions. These businesses are higher-growth, higher-return, capital-light businesses boasting a solid presence. VOYA’s growing distribution network and efficiency gains from automation are expected to give it an edge over peers.

 In Health Solutions, net revenues and margins are projected to rise in 2025, driven by improvements in the Stop Loss business, with margin expansion likely carrying into 2026. In Investment Management, adjusted operating margins in 2025 should remain in line with 2024, as the company balances cost discipline with targeted investments in private capabilities and U.S. intermediary distribution.

VoyaFinancial’s acquisition of OneAmerica Financial has strengthened its Wealth Solutions retirement business, expanded distribution and advisor relationships, while adding new capabilities. The deal brings coverage to nearly 8 million participants across 60,000 retirement plans, with Defined Contribution assets now at $670 billion. In 2025, it is expected to contribute about $200 million in revenues and $75 million in operating earnings.

Voya Financial’s long-term partnership with Allianz Global Investors has also been a catalyst for growth, adding both scale and diversification to its Investment Management business. By integrating AllianzGI’s expertise, the company has broadened its global presence and expanded across multiple asset classes, strengthening its position as a competitive provider of investment solutions in international markets.

Voya Financial’s financial profile has shown areas of pressure, with interest coverage below industry norms and leverage previously trending higher than peers, raising some concerns over flexibility. That said, the company has made clear progress in strengthening its position; its long-term debt was reduced by more than 20% from 2024-end to $1.6 billion as of June 30, 2025, and its financial leverage ratio improved to 27.4%.

Wealth Distribution of VOYA

VOYA continues to emphasize shareholder value creation through steady capital returns. The company has increased its dividend seven times over the past five years, resulting in a five-year annualized growth rate of 34.7%, with a current payout ratio of 22%.

Conclusion

Overall, Voya Financial is building steady momentum through distribution growth, automation gains, and acquisitions that expand scale and strengthen its core businesses. However, rising debt levels and returns that lag peers remain areas of concern, while its growing capabilities and earnings trajectory point to sustained long-term value creation.

Given its discount valuation, it is better to add this Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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