Sun Life Financial Inc. (SLF): A Bull Case Theory 

We came across a bullish thesis on Sun Life Financial Inc. on Beat the TSX (BTSX-20)’s Substack by Beat the TSX-27 Strategy. In this article, we will summarize the bulls’ thesis on SLF. Sun Life Financial Inc.’s share was trading at $59.38 as of September 29th. SLF’s trailing and forward P/E were 14.52 and 10.37 respectively according to Yahoo Finance.

Sun Life Financial Inc. (SLF) reported Q2/25 EPS of $1.79, up 4% year-over-year, largely driven by ongoing share buybacks rather than operational strength, as core businesses faced notable headwinds. Asset management through MFS Investment Management experienced heavier-than-expected net outflows of $14.3 billion, pressuring margins, while the U.S. stop loss segment suffered from weak sales and profitability challenges. The dental business was materially affected by Medicaid reform, leading to the withdrawal of its $100 million earnings guidance.

Canadian results were mixed, with individual insurance sales down 19% but group sales up 41%, and Asian insurance sales grew 7%, supported by strong demand in Hong Kong. Despite these operational issues, Sun Life’s capital position remains robust, with LICAT at 151% and $1.1 billion in holdco cash, while disciplined buybacks—11.2 million shares repurchased year-to-date—continue to support per-share metrics. Long-term ROE guidance of 20% by 2027–2029 remains achievable if operational challenges stabilize. Solid contributions from SLC Management and segments of the Asian business further underpin the company’s resilience.

While near-term earnings may remain volatile until MFS stabilizes and U.S. segments recover, SLF offers an attractive risk/reward for long-term investors, bolstered by dividend yield of 4.39% and capital strength. Current positioning reflects an underweight allocation of 2%, with plans to increase to equal weight at 3.3%, reflecting confidence in the combination of capital strength, buybacks, and steady Asian growth. Overall, Sun Life represents a financially solid, dividend-generating investment with long-term upside potential, though patience will be required while management addresses underperforming operations.

Previously we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted the company’s dominant position in global asset management, strong net inflows, and recurring revenue from the Aladdin® platform. The company’s stock price has appreciated approximately by 18.49% since our coverage. The thesis still stands as BlackRock’s scale and technological leadership remain intact. Beat the TSX-27 Strategy shares a similar perspective but emphasizes Sun Life Financial’s resilience through strong capital, disciplined buybacks, and steady Asian growth despite operational headwinds.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.