Fed Rate Hike is Bad News For Metlife Stock

Shares of MET could be headed towards two-year lows

Digital Content Manager
Dec 21, 2018 at 3:24 PM
facebook X logo linkedin

Shares of Metlife Inc. (NYSE:MET) are down 0.6% at $39.11, after the company on Thursday reached a settlement with the state of Massachusetts over claims that it failed to pay pensions to thousands of retirees it improperly "presumed dead." The insurance provider will have to pay $1 million fine to resolve the claim filed last June. 

And losses could continue to mount for MET stock going forward, after Fed Chair Jerome Powell and the rest of the Federal Open Market Committee (FOMC) opted to move forward this week with their latest interest rate hike. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, MET tops the list of worst stocks to own the week after Fed rate hikes.

In fact, since the current policy-tightening cycle began in late 2015, the equity has averaged a one-week loss of 2.3% following rate hikes, with 0% positive returns in the post-hike week. If this track record is any indicator, shares of MET could soon dip to $38.34, based on Wednesday's closing price -- which would mark the lowest it's traded since September 2016. 

MET chart since Sept 2016

KBW cut its price target on the stock to $53 from $56 earlier this week, and others may follow suit as MET continues to trend lower. Six of 11 analysts give Metlife a "buy" or better rating, with not a single "sell." Any price-target cuts or downgrades from this group could spark short-term selling pressure on the shares.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI