Lincoln National Corporation (LNC), Metlife Inc (MET): Buy the Financials Still Trading Below Book Value – Part 1

Hartford Financial Services Group Inc (NYSE:HIG) is expected to grow earnings from $2.88 last year to $3.54 next year. The stock trades at the highest forward multiple in the group at 8.9 times those estimates.

Lincoln National Corporation (NYSE:LNC) is expected to grow earnings from $4.47 in 2012 to $4.94 in 2014. Even on an earnings multiple basis, the stock trades at 7.4 times those forward numbers.

Metlife Inc (NYSE:MET) is expected to grow earnings from $5.28 in 2012 to $5.73 in 2014. The stock trades at roughly 7.8 times those forward earnings estimates. The stock also has a solid 2.6% dividend yield.

Prudential Financial Inc (NYSE:PRU) is expected to grow earnings from $8.31 this year to $8.87 next year. On an earnings multiple basis, the stock trades at 7.9 times those forward estimates.The stock has a 2.4% dividend yield.

Bottom line

As mentioned back with the original article, investors could probably spend months analyzing the best-positioned stock in the sector. In the end, these stocks will all generally trade in the same pattern. Investors can purchase Metlife Inc (NYSE:MET) due to the higher 2.6% dividend yield or Lincoln National Corporation (NYSE:LNC) for the lowest book value and forward earnings multiple.

Either way, investors need to own this sector along with other financials that continue to trade below book value even after the financial crisis is long over.

The article Buy the Financials Still Trading Below Book Value – Part 1 originally appeared on Fool.com and is written by Mark Holder.

Mark Holder and Stone Fox Capital Advisors, LLC own shares of Hartford Financial Services (NYSE:HIG) and Lincoln National. The Motley Fool has no position in any of the stocks mentioned. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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