The interesting thing about investing on global stocks is that the stock-picking game is all comparative. You may be looking at an otherwise solid company with a solid earnings track record and a huge book value. However, all that goes down the toilet when that stock is compared to another company that is experiencing lots of growth even though that other company is not making any money.
I know this really doesn’t make much sense from a purely practical perspective. However, if you’ve been in the stock market for a long enough time, you would know that the stock market is anything but rational. This is the case when it comes to insurance stocks.
One of the best value stocks as far as assets and consumer demand are concerned is Canada’s largest insurance company, Manulife (NYSE:MFC). Manulife has had a tough time lately. Its stock hasn’t been doing too well due to higher rates of claims coming out of the United States and Canada. Moreover, the depressed interest rate climate has put a damper on its massive investment portfolio. To make matters worse, the company is heavily invested in the energy sector, and everybody knows how bad this sector has been doing recently. With this background, Manulife took a massive hit. We’re talking about $276 million due to its energy assets.
If you’re looking for a beat-up stock that has a solid global brand as well as a massive loyal base of customers, it is Manulife. If you’re looking for really short-term gains, don’t pick Manulife. However, if your timeline is around five years and over, this is definitely a solid stock to get into.
