Analyst Says Corebridge Financial (CRBG) is Among the Top Non-Tech Undervalued Stocks to Buy

We recently published Wall Street Analysts Like These 10 Stocks. Corebridge Financial Inc (NYSE:CRBG) is one of the stocks analysts were recently talking about.

Bill Nygren, Oakmark Funds partner and CIO, said in a recent program on CNBC that Corebridge Financial Inc (NYSE:CRBG) is among the top non-tech stocks on his list. The analyst likes the stock’s valuation and said it’s trading at just six times expected earnings.

“We’re we’re not going to dispute it’s a competitive space, but we’re not arguing it’s worth 20 times earnings. If it’s at five times earnings today and they’re putting most of their capital into share repurchase, you know, in five to seven years, if the stock doesn’t move, they would be taking out the entire market cap of the company. So, a lot of our stories are relatively slow topline go growth that’s supplemented by return of capital to shareholders. And if that goes to share repurchase, that can really boost their earnings per share growth rate.”

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Artisan Value Income Fund stated the following regarding Corebridge Financial, Inc. (NYSE:CRBG) in its first quarter 2024 investor letter:

“Our top contributors were nVent Electric, Corebridge Financial, Inc. (NYSE:CRBG) and Lamar Advertising. Corebridge, a life insurance and retirement solutions company, was previously a unit of AIG and a September 2022 IPO. AIG still owns ~51% of the company following its recent secondary sale in November 2023, equaling 9.1% of shares outstanding. Since adding Corebridge to the portfolio in Q1 2023, it’s been among our top performers as the “higher for longer” interest rate environment has driven an increase in spread income. Our investment thesis has been that Corebridge would benefit from the current interest rate environment following ZIRP (zero interest rate policy) and would also have plenty of room to improve its competitive position and wring out efficiencies to improve ROE now that it is a standalone entity that is no longer part of a large inefficient and capital-constrained parent. Even after recent stock price gains, Corebridge yields 3.2% on its dividend, with a double-digit free cash flow yield. In addition to Corebridge’s regular dividend, the company paid two special dividends in 2023 totaling $1.78, which is 7.6% on the March quarter-ending stock price. Besides dividends, we expect free cash flow will be used to ensure holding company liquidity, retire diluted shares and support modest growth expectations.”

While we acknowledge the risk and potential of CRBG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRBG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.