Voya Financial Surpasses 50-Day SMA: How to Trade the Rise?

Short-Term Bullish Trend for VOYA

Voya Financial, Inc. (VOYA) has been trading above its 50-day simple moving average (SMA), indicating a short-term bullish trend. The 50-day SMA is a crucial indicator used by traders and analysts to identify support and resistance levels. It serves as one of the first signals for an uptrend or downtrend, making it a valuable tool in assessing market direction.

Affordable Shares in the Life Insurance Industry

Currently, shares of Voya Financial are trading at a discount compared to the Zacks Life Insurance industry. The company’s price-to-book value stands at 1.17X, which is lower than the industry average of 1.93X. This suggests that the stock may be undervalued relative to its peers. With a market capitalization of $7.4 billion, Voya has an average trading volume of 0.8 million shares over the last three months. Additionally, the insurer holds a Value Score of B, indicating a moderate investment opportunity.

Other companies in the sector, such as Primerica, Inc. (PRI) and Sun Life Financial Inc. (SLF), are trading at higher multiples than the industry average, while Brighthouse Financial, Inc. (BHF) is trading at a discount. This highlights the varying valuation dynamics across the life insurance sector.

Price Performance and Industry Comparison

In terms of price performance, Voya Financial has gained 12.1% year-to-date, outperforming its industry’s 1.2% growth. However, it has underperformed the broader Finance sector and the Zacks S&P 500 Composite, which both saw increases of 13.3% and 12.7%, respectively. This indicates that while the company is performing better than its direct competitors, it still has room for improvement relative to the overall market.

Future Projections and Analyst Outlook

Looking ahead, the Zacks Consensus Estimate for Voya Financial’s 2025 earnings per share is set at $8.65, with revenues expected to reach $1.3 billion. For 2026, the consensus estimates suggest a 16.5% increase in earnings per share and a 10% rise in revenues from 2025 figures. The long-term earnings growth rate is projected to be 14.2%, reflecting positive expectations for the company's future performance.

Analyst sentiment remains optimistic, with the Zacks Consensus Estimate for 2025 and 2026 earnings having increased by 0.9% each over the past 30 days. This upward revision signals growing confidence among analysts regarding the company’s financial outlook.

Potential Upside from Analysts

Based on short-term price targets provided by 12 analysts, the Zacks average price target for Voya Financial is $83.17 per share. This represents a potential 8.5% upside from the last closing price, further reinforcing the positive sentiment surrounding the stock.

Key Growth Drivers for VOYA

Voya Financial is driving growth through organic initiatives, including an expanding distribution network and enhanced efficiency from automation. These efforts, combined with disciplined cost savings and strategic capital deployment, are strengthening the company’s earnings potential. Strategic acquisitions also play a significant role in supporting long-term performance.

The company’s earnings are driven by strong performances in Wealth Solutions, Investment Management, and Health Solutions. These segments are high-growth, high-return, and capital-light businesses with a solid market presence. Voya’s growing distribution network and efficiency gains from automation are expected to give it a competitive edge over its peers.

In the Health Solutions segment, net revenues and margins are anticipated to rise in 2025, driven by improvements in the Stop Loss business. Margin expansion is likely to continue into 2026. In Investment Management, adjusted operating margins in 2025 are expected to remain consistent with 2024, as the company balances cost discipline with targeted investments in private capabilities and U.S. intermediary distribution.

Strategic Acquisitions and Partnerships

The acquisition of OneAmerica Financial has strengthened Voya’s Wealth Solutions retirement business, expanded its distribution and advisor relationships, and added new capabilities. The deal brings coverage to nearly 8 million participants across 60,000 retirement plans, with Defined Contribution assets now at $670 billion. In 2025, this acquisition is expected to contribute approximately $200 million in revenues and $75 million in operating earnings.

Additionally, Voya’s long-term partnership with Allianz Global Investors has served as a catalyst for growth. By integrating AllianzGI’s expertise, the company has broadened its global presence and expanded across multiple asset classes, strengthening its position as a competitive provider of investment solutions in international markets.

Financial Profile and Debt Reduction

While Voya Financial’s financial profile has shown areas of pressure, including interest coverage below industry norms and leverage previously trending higher than peers, the company has made significant progress in improving its position. As of June 30, 2025, its long-term debt was reduced by more than 20% from the end of 2024, reaching $1.6 billion. Its financial leverage ratio improved to 27.4%, indicating a healthier balance sheet.

Shareholder Value Creation

Voya continues to emphasize shareholder value creation through steady capital returns. Over the past five years, the company has increased its dividend seven times, resulting in a five-year annualized growth rate of 34.7%. The current payout ratio stands at 22%, suggesting that the company maintains a balanced approach to rewarding shareholders while preserving financial flexibility.

Conclusion

Overall, Voya Financial is building steady momentum through distribution growth, automation gains, and strategic acquisitions that expand its scale and strengthen its core businesses. While rising debt levels and returns that lag behind peers remain areas of concern, the company’s growing capabilities and earnings trajectory point to sustained long-term value creation. Given its discount valuation, it presents an attractive opportunity for investors seeking growth in the financial sector.