Voya Financial (NYSE:VOYA)

CAPS Rating: 5 out of 5

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Member Avatar walkie518 (51.80) Submitted: 10/14/2014 7:22:25 PM : Outperform Start Price: $35.71 VOYA Score: +8.03

One of the largest retirement services companies is traded like a life insurance business. This is an utter travesty but complexity always breeds confusion. Yes, Voya will retain its insurance business, but Voya is also growing other parts of its business that have higher return on equity. Voya was split off from Dutch parent ING in a transaction forced by the European Commission to simplify operations after the parent's bail-out. This provided an incredible opportunity to enter the stock at a bargain price, but even today returns are such that this name should produce double-digit returns on equity in the current rate environment. Once rates rise, those returns should increase as life-insurance portfolio holdings do better on longer-dated paper as a secondary source of income, and asset management and retirement services solutions continue to thrive.

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Member Avatar surabayajhonny (44.16) Submitted: 9/17/2013 3:07:30 PM : Outperform Start Price: $29.87 VOYA Score: +22.32

well below book value.

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Member Avatar danconfund (63.21) Submitted: 6/9/2013 6:43:20 PM : Outperform Start Price: $28.30 VOYA Score: +26.09

Trading at significant discount to book value, return on assets above average, and earnings power will become stronger when yields rise (look up insurance spreads).
Two scenarios:
1) Primary takeover candidate
2) Strong future company
ING Groep has to liquidate all of the their holdings of VOYA so it's safe to assume stock price appreciation in the near future so the parent company can make some money.

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