Jackson Financial Inc. (JXN): A Bull Case Theory
From Yahoo Finance: 2025-06-09 11:44:00
Jackson Financial Inc. (JXN) is the largest provider of variable annuities in the U.S., offering a complex retirement product with high fees but excellent service and customer relationships. With a trailing P/E of 62.58, JXN’s stock was trading at $82.61 on June 4th. The company returned $631 million to shareholders in 2024.
Jackson Financial Inc. (JXN) has adjusted 2024 EPS of $18.79 and a $78 share price, implying a P/E of 4.15. With $700–800 million earmarked for 2025 capital returns and 39% YoY growth in new annuity sales, the company shows resilience. An opportunity for investors with potential for 4x returns over five years.
Despite accounting complexity and residual pressure from Prudential’s 2021 spin-off, Jackson Financial Inc. (JXN) is undervalued. Potential for a tripling in market cap if there is a multiple re-rating to 10x earnings. Risks from shifting consumer behavior or market disruption appear unlikely to threaten near-term returns.
Jackson Financial Inc. (JXN) was covered in a bullish thesis by Shade Research in November 2024, emphasizing its undervaluation, strong annuity business, and potential for a 4x return. 36 hedge fund portfolios held JXN at the end of the first quarter. The company is not among the 30 Most Popular Stocks Among Hedge Funds.