Brighthouse Financial (BHF) shares rallied 27.2% in the last trading session to close at $57.59. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.5% loss over the past four weeks.
The shares likely have gained on the news of Brighthouse Financial to get acquired by Aquarian Holdings along with few other co-investors per news published in Globaldata. Early this year there were news about Brighthouse Financial is reportedly to be acquired. Per Financial Times "some of the most prominent private capital managers" is interested in placing an offer.
Brighthouse is poised to benefit from growth opportunities, given its expansive and compelling suite of life and annuity products and a strong market presence. It aims to become a premier player in the industry.
Brighthouse is also revamping its life insurance business to boost annuity sales. Focus on transitioning the business mix to less capital-intensive products and reinsurance programs, enhancing capital efficiencies, bodes well.
This annuity and life insurance company is expected to post quarterly earnings of $5.06 per share in its upcoming report, which represents a year-over-year change of +26.8%. Revenues are expected to be $2.25 billion, up 3.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Brighthouse Financial, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BHF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Brighthouse Financial belongs to the Zacks Insurance - Life Insurance industry. Another stock from the same industry, GoHealth (GOCO), closed the last trading session 3.1% lower at $4.71. Over the past month, GOCO has returned -9.8%.
GoHealth's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$2.06. Compared to the company's year-ago EPS, this represents a change of +44.8%. GoHealth currently boasts a Zacks Rank of #3 (Hold).
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Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report GoHealth, Inc. (GOCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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