Jackson Financial (JXN): Examining Valuation After Recent Momentum and Long-Term Shareholder Returns

Jackson Financial (JXN) shares have moved only slightly over the past week, but some investors are keeping a close eye on these small swings because of the company’s steady revenue and recent upward trend in net income.

See our latest analysis for Jackson Financial.

Zooming out, Jackson Financial’s share price has gained 19.9% over the past 90 days and the stock is up nearly 15% year-to-date, reflecting solid momentum for the company. Its 1-year total shareholder return stands at 6.2%. The three-year total return is an impressive 251%, highlighting both resilience and long-term value creation despite recent volatility.

If you’re looking to expand your watchlist and stay ahead of market moves, now’s a great moment to discover fast growing stocks with high insider ownership

But with the stock trading just below its analyst price target and showing strong recent gains, the big question is whether Jackson Financial remains undervalued or if the market has already priced in its future growth potential.

Most Popular Narrative: 7.7% Undervalued

With Jackson Financial’s fair value pegged by the prevailing narrative at $109.20, and the last close at $100.81, the stock is presented as attractively priced within its current momentum. The valuation hinges on a view that steady capital management and competitive annuity products are driving long-term value, setting the stage for several potentially transformative trends.

Strong and growing capital generation, disciplined risk management, and effective capital return, with share repurchases and rising dividends, drive increases in EPS and book value per share. Growing liquidity and optionality for M&A or reinvestment provide long-term support for earnings growth and shareholder value creation.

Read the complete narrative.

Analysts are betting on compounding profit margins and robust revenue growth to back up this price target. Want to know which financial forecasts and bold assumptions are quietly fueling this upgrade? The real drivers behind this valuation may surprise you. Find out what underpins these upward moves.

Result: Fair Value of $109.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent outflows from Jackson’s annuity business and growing exposure to riskier assets could threaten the company’s future revenue and profit growth.

Find out about the key risks to this Jackson Financial narrative.

Build Your Own Jackson Financial Narrative

If you see things differently or want to dig into the numbers yourself, you can build your own Jackson Financial story in just a few minutes. So why not Do it your way?

A great starting point for your Jackson Financial research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Smart Investment Moves?

Don’t let your next big opportunity slip by when you could be finding companies with great growth or high potential today using the Simply Wall Street Screener.

• Unlock the potential of artificial intelligence by jumping into these 26 AI penny stocks and spot companies revolutionizing industries with forward-thinking tech.
• Boost your income stream by tapping into these 22 dividend stocks with yields > 3% and grab shares of businesses paying out strong, consistent dividends above 3%.
• Capitalize on market inefficiencies by assessing these 832 undervalued stocks based on cash flows and pinpoint undervalued stocks with standout cash flow fundamentals before the crowd catches on.

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