MET moving into attractive territory
MetLife is the largest and most successful life insurance company in the United States. They are still trading within a decent range, only at 8x forward earnings. After using a historical DCF they are fairly valued at around $47-49, but that essentially disregards future improvement for revenue or EPS, which should occur in coming quarters. Therefore I have a price target closer to the high 50s.
In the chart above I outlined support (green), resistance (red), and relative interest (blue). What I mean by relative interest is that if MET trades below the blue line it may be purchase worthy, or at least taking a look at. Stochastics RSI is also starting to bottom out around at the 5-12 area. The only risk that seems to be highly self-evident is if the market continues to sell-off, and potentially leads into a correction. That is one glaring loop-hole, but I think at $49 and under it is a bargain. If a correction DOES occur, it may drop as low as $40-45 when considering beta.
I might enter a small position in MetLife on Monday and add more the further it drops. I would like it closer to $48, but we'll see how the market moves. Don't bet the house, be cautious, but don't be afraid. Thanks for reading.
In the chart above I outlined support (green), resistance (red), and relative interest (blue). What I mean by relative interest is that if MET trades below the blue line it may be purchase worthy, or at least taking a look at. Stochastics RSI is also starting to bottom out around at the 5-12 area. The only risk that seems to be highly self-evident is if the market continues to sell-off, and potentially leads into a correction. That is one glaring loop-hole, but I think at $49 and under it is a bargain. If a correction DOES occur, it may drop as low as $40-45 when considering beta.
I might enter a small position in MetLife on Monday and add more the further it drops. I would like it closer to $48, but we'll see how the market moves. Don't bet the house, be cautious, but don't be afraid. Thanks for reading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.