Canadian financial services company Sun Life Financial Inc. (TSE:SLF) (NYSE:SLF) looks unstoppable as it is firing on all cylinders to bolster business growth. The company is expanding its offerings and growing inorganically. According to the TipRanks tool, bullish financial bloggers and retail investors also paint a positive outlook about the stock.
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What’s Driving the Optimism?
Sun Life Financial can be credited with a stupendous record of beating earnings estimates. The financial services company has posted an earnings beat in all trailing quarters, except one, in the last couple of years. If the trend persists, it can provide strong support to its share price performance in the coming quarters.
SLF also looks unstoppable in its inorganic growth efforts. In June 2022, the company concluded the buyout of the second-largest dental benefits provider in the United States, DentaQuest. The acquisition is expected to assist in generating more than $7 billion in total annual benefit revenues.
Further, the financial services company is planning to buy a 51% stake in U.S.-based retail distribution firm Advisors Asset Management, Inc. The transaction is expected to help it expand in the rapidly growing high-net-worth and ultra-high-net-worth markets of the U.S.
The company has been seeing impressive demand for its alternative investment capabilities. SLC Management exited the second quarter of 2022 with assets under management of $194 billion, including net inflows of about $7.3 billion in the quarter.
Sun Life Financial is also making significant strides in its digitization efforts as the company’s digital coach, Ella, is gaining popularity in Canada.
Is SunLife Stock a Good Buy?
SunLife Financial stock seems like a decent option to grab now. According to TipRanks, the Street has a Moderate Buy consensus rating on the stock, which is based on four Buys and four Holds.
Further, TipRanks data shows that financial bloggers are 100% Bullish on SLF stock, in comparison to the sector average of 68%. Also, retail investors have increased their holdings in the SLF stock by 2.5% in the last 30 days.
According to the TipRanks tool, the SLF stock also carries a ‘Perfect 10’ Smart Score, which highlights the stock’s potential to outperform.
Final Thoughts
Sun Life Financial stock seems to have the potential to turn around the 5.7% decline in its shares so far in 2022. The company’s solid inorganic growth efforts, impressive record of earnings beats, diversified business model, and expanding portfolio offerings instill optimism among investors. Moreover, SLF stock’s average price target of C$70.33, implies a 21.8% upside potential from the current levels.
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