8 Undervalued Insurance Stocks To Invest In

4. Equitable Holdings Inc. (NYSE:EQH)

Forward P/E: 6.34

Earnings Growth: 31.80%

Number of Hedge Fund Holders: 44

Equitable Holdings Inc. (NYSE:EQH) is an American financial services and insurance company that ranks among the best insurance stocks to buy. The company operates through two main divisions: Equitable Financial Life Insurance Company, which provides annuity and life insurance products, and AllianceBernstein, which focuses on asset management.

In the second quarter of 2024, the company demonstrated strong earnings growth fueled by organic expansion in its Retirement, Asset Management, and Wealth Management businesses. The US retirement market is currently favorable and that allows Equitable Holdings Inc. (NYSE:EQH) to capitalize on demographic trends and macroeconomic conditions.

A significant recent development was the partnership with BlackRock announced in April 2024. This collaboration introduced the LifePath Paycheck retirement income solution to defined contribution plans, enabling employees to access guaranteed income through annuity contracts issued by Equitable Holdings Inc. (NYSE:EQH). This initiative addresses the growing retirement savings crisis and underscores Equitable’s commitment to providing effective financial solutions.

For Q2 2024, Equitable Holdings Inc. (NYSE:EQH) reported impressive financial results with non-GAAP operating earnings per share of $1.43, a 23% increase from the same quarter last year. The company achieved record Retirement net inflows of $2.3 billion, supported by $500 from the LifePath Paycheck initiative. Additionally, AllianceBernstein contributed $1.3 billion in active net inflows.

Equitable Holdings Inc. (NYSE:EQH) also expects to generate between $1.4 billion and $1.5 billion in cash for 2024, reflecting an increase of 8% to 15% compared to 2023. The company aims to expand this cash generation to $2 billion annually by 2027.

Over the past 5 years, Equitable Holdings Inc. (NYSE:EQH) has recorded a compound annual growth rate of 8% for its revenue and 16% for its levered free cash flow.

With its solid financial performance, innovative offerings like LifePath Paycheck, and effective cash management strategies, Equitable Holdings Inc. (NYSE:EQH) presents a compelling investment opportunity for those looking to invest in the insurance sector.

According to Insider Monkey’s database, Equitable Holdings Inc. (NYSE:EQH) has gained significant interest from institutional investors. The number of hedge funds holding stakes in EQH increased from 32 in Q1 2024 to 44 in Q2 2024.