1 Insurance Stock with Impressive Fundamentals and 2 Facing Headwinds

Insurance companies serve as the backbone of risk management, providing essential protection and financial security for individuals and businesses. But concerns about claims severity and tightening regulations have tempered enthusiasm, limiting the industry’s gains to 3.4% over the past six months. This return lagged the S&P 500’s 9.1% climb.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one insurance stock poised to generate sustainable market-beating returns and two we’re swiping left on.

Two Insurance Stocks to Sell:

MetLife (MET)

Market Cap: $51.06 billion

Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE:MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.

Why Do We Pass on MET?

1. Large revenue base constrains its growth potential, as seen in its unexciting 2.8% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
3. Book value per share tumbled by 12.3% annually over the last five years, showing insurance sector trends are working against its favor during this cycle

At $77.47 per share, MetLife trades at 1.7x forward P/B. To fully understand why you should be careful with MET, check out our full research report (it’s free).

Equitable Holdings (EQH)

Market Cap: $12.93 billion

Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE:EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.

Why Should You Sell EQH?

1. Annual sales growth of 2.2% over the last five years lagged behind its insurance peers as its large revenue base made it difficult to generate incremental demand
2. Day-to-day expenses have swelled relative to revenue over the last two years as its pre-tax profit margin fell by 13.3 percentage points
3. Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 166% annually over the last five years

Equitable Holdings’s stock price of $45.66 implies a valuation ratio of 6.1x forward P/E. Read our free research report to see why you should think twice about including EQH in your portfolio.

One Insurance Stock to Buy:

Erie Indemnity (ERIE)

Market Cap: $14.57 billion

Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ:ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.

Why Is ERIE a Top Pick?

1. Impressive 13.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Impressive 13.1% annual book value per share growth over the last five years indicates it’s building equity value this cycle
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Erie Indemnity is trading at $272.83 per share, or 22.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.