Story updated at 9:55 a.m. to reflect market activity.
Genworth Financial fell -1.4% to $17.40 in morning trading.
The firm set a price target of $18 for the life insurance provider. According to Morgan Stanley analysts, Genworth has outperformed its peers by 40% over the past year, and lacks near-term catalysts.
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Separately, TheStreet Ratings team rates GENWORTH FINANCIAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENWORTH FINANCIAL INC (GNW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 48.00% and other important driving factors, this stock has surged by 62.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GNW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GENWORTH FINANCIAL INC has improved earnings per share by 48.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GENWORTH FINANCIAL INC increased its bottom line by earning $1.15 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $1.15).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 78.6% when compared to the same quarter one year prior, rising from $103.00 million to $184.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.1%. Since the same quarter one year prior, revenues slightly increased by 0.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 60.52% to $61.00 million when compared to the same quarter last year. In addition, GENWORTH FINANCIAL INC has also vastly surpassed the industry average cash flow growth rate of -0.13%.
- You can view the full analysis from the report here: GNW Ratings Report