Jackson Financial: Booming Annuity Sales, Slowing Stock Momentum (Rating Downgrade)
Summary
- I am downgrading Jackson Financial stock to a hold after a significant rally since mid-2023 and new concerns over future growth amid changing market conditions.
- Annuity sales surged 26% in Q2, driven by RILAs, but lower Treasury rates pose a risk.
- Despite strong EPS growth looking back and a low price-to-earnings ratio, JXN's valuation is uncertain.
- What we know is that momentum has slowed, with RSI indicating weakness; taking profits near the upper $80s is prudent, with support around $70.
Alistair Berg
It was yet another banner quarter for annuity. According to LIMRA, US annuity sales soared 26% in Q2 to $109.9 billion, driven by a mix of traditional and more complex products. For the first half of the year, sales were up 20% from
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