Shares of Voya Financial, Inc. VOYA have gained 48.6% in the past six months, outperforming the industry’s growth of 22.2%.
Growth in the Retirement and Investment Management businesses, improved Employee Benefits segment performance, strategic acquisitions and partnerships, record net flows and strong excess capital generation are driving the stock. The momentum is likely to continue, supported by sustained strength in its core businesses, strategic acquisitions and ongoing share repurchases.
Shares of Voya Financial have outperformed its peers, including Reinsurance Group of America, Incorporated RGA, Primerica, Inc. PRI and Brighthouse Financial, Inc BHF, which have gained 21.4%, 15.7% and 25.7%, respectively, in the past six months.
6-Month Price Performance: VOYA, RGA, PRI, BHF & Industry
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VOYA’s Attractive Valuation
Voya Financial shares are trading at a price-to-book value of 1.43X, lower than the industry average of 2.26X.
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VOYA’s Growth Projection
The Zacks Consensus Estimate for Voya Financial’s 2026 earnings per share (EPS) indicates a 4.5% year-over-year increase. The consensus estimate for revenues is pegged at $1.31 billion, implying a 2.3% year-over-year decline. The consensus estimate for 2027 EPS and revenues indicates an increase of 23.2% and 12%, respectively, from the corresponding 2026 estimates.
Earnings have grown 8.8% in the past five years, better than the industry average of 4.9%. The expected long-term earnings growth rate is 11.2%.
Mixed Analyst Sentiment on VOYA
The Zacks Consensus Estimate for 2026 earnings has moved south 0.8%, while the metric for 2027 has moved north 1.2%, in the past 30 days.
Factors Acting in Favor of VOYA
Voya Financial’s Retirement business remains a key growth driver, supported by strong participant growth and rising fee-based revenues. Defined-contribution net inflows totaled $8.1 billion in the second quarter, while fee-based revenue grew 10% year over year and accounted for more than 60% of Retirement revenues. With more than 10 million participant accounts and additional large-plan implementations expected in the second half of 2026, the shift toward fee-based revenues should support a more stable and recurring revenue stream and margin growth.
Management described the OneAmerica retirement acquisition as highly successful, generating returns above 30%. The acquisition has meaningfully strengthened the scale and earnings power of Voya’s Retirement business, which now serves nearly 10 million Retirement accounts.
Investment Management operating earnings rose 12% to $57 million, while second-quarter net inflows reached $1.2 billion. AUM stood at about $377 billion, supported by strong investment performance and demand for fixed income and private credit. VOYA continues to take strategic steps to ramp up growth in its Investment Management segment. Voya Financial’s long-term strategic partnership with Allianz Global Investors has added scale and diversification to Voya Investment Management.
Voya’s Wealth Management business is emerging as another growth opportunity. Revenues increased 12% year over year in the second quarter, while assets reached approximately $33 billion, up 60% from the prior-year period. More than 650 advisers support the company’s efforts to expand advice and wealth-management services among its retirement customers.
The insurer’s Employee Benefits segment is likely to gain from improving Stop Loss underwriting. In the second quarter of 2026, the loss ratio declined 50 pts to 74%. Higher Stop Loss pricing, tighter underwriting and better risk selection are expected to support margins, with management targeting margins by 2027.
Voya Financial incurred approximately $40 million of pretax severance costs in the second quarter of 2026 as part of its expense-reduction initiatives. However, management expects the actions to fully offset the upfront costs by year-end. The lower expense base should improve operating leverage and establish a more favorable cost structure heading into 2027.
The company’s capital levels remain strong. Voya Financial generated approximately $150 million of excess capital in the second quarter and $350 million in the first half of 2026. The company repurchased $150 million of shares in the second quarter and plans to repurchase at least another $100 million in the third quarter. Continued capital generation and buybacks should support EPS growth while enhancing shareholder returns.
Risks for VOYA
Voya Financial remains exposed to market conditions, employment trends and investment performance. Weak alternative investment results and lower Retirement spread income pressured second-quarter earnings, although management expects alternative investment performance to improve in the third quarter of 2026.
VOYA faces intense competition from broker-dealers, financial advisors, diversified financial institutions and start-up financial services providers, which could result in increased pricing pressure on certain products and services.
Conclusion
Voya Financial is positioned for earnings growth, supported by Wealth Management expansion, improved Employee Benefits underwriting, positive net flows and the completed OneAmerica integration. Expense savings, strong cash generation and strategic partnerships should support growth and shareholder returns, while competition and market volatility remain key risks.
Given the mixed analyst sentiment, it is wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Voya Financial, Inc. (VOYA): Free Stock Analysis Report
Reinsurance Group of America, Incorporated (RGA): Free Stock Analysis Report
Primerica, Inc. (PRI): Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).