How Manulife’s Strong Earnings and New Real Asset Fund Could Shape the TSX:MFC Investment Case

• Manulife Financial Corporation recently reported its second quarter and half-year 2025 results, showing net income of C$1.87 billion for the quarter and C$2.43 billion for the half-year, both significantly higher than the prior year's figures.
• The company also introduced the Manulife Real Asset Pooled Fund to Canadian defined contribution retirement plans, expanding access to diversified real asset investments within retirement portfolios.
• We'll explore how Manulife's strong earnings growth in the most recent quarter could influence its forward-looking investment narrative.

Outshine the giants: these 20 early-stage AI stocks could fund your retirement.

Manulife Financial Investment Narrative Recap

To be a shareholder in Manulife Financial, you generally need to believe in the company's ability to deliver steady earnings growth through geographic diversification and disciplined capital management, while carefully managing exposure to macroeconomic volatility. The strong Q2 results provide some momentum to the short-term narrative, but do not materially change the biggest near-term catalyst, continued execution in Asian markets, or the primary risk related to variable investment returns, especially tied to office real estate exposure.

The recent launch of the Manulife Real Asset Pooled Fund to Canadian defined contribution retirement plans stands out as a relevant development. By expanding diversified real asset offerings, Manulife is seeking to broaden its product platform and may be aiming to offset some investment risk, though the effect on its growth outlook will become clearer over time. But while this initiative highlights the company's investor-focused approach, investors should still consider how ...

Read the full narrative on Manulife Financial (it's free!)

Manulife Financial's narrative projects CA$53.0 billion revenue and CA$7.6 billion earnings by 2028. This requires 20.9% yearly revenue growth and a CA$2.9 billion earnings increase from the current CA$4.7 billion.

Uncover how Manulife Financial's forecasts yield a CA$47.50 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Six Simply Wall St Community fair value estimates for Manulife range from C$30 to C$104.99, showing a broad spectrum of investor views. While some are optimistic about continued earnings growth, remember that office real estate exposure remains a risk to watch.

Explore 6 other fair value estimates on Manulife Financial - why the stock might be worth 30% less than the current price!

Build Your Own Manulife Financial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Manulife Financial research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Manulife Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Manulife Financial's overall financial health at a glance.

Searching For A Fresh Perspective?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• Find companies with promising cash flow potential yet trading below their fair value.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com