MetLife: Down But Not Out

Summary:

*MetLife's stock has significantly underperformed the broader market so far in 2020.

*There are reasons for the poor stock performance - recession fears and a low interest rate environment - but I believe that this insurer will make a comeback in 2020.

*I am long MetLife, and I have no plans to reduce my stake in the near future.

MetLife's ($MET) stock has taken a significant hit so far in 2020 due mostly to the COVID-19-related concerns, although the low interest interest environment is not helping either. MET shares have underperformed the broader market by ~25 percentage points on a YTD basis.

Investors should definitely be concerned about lower interest rates and the potential economic impact of COVID-19 but, in my opinion, this steep pullback will eventually turn out to be a great long-term buying opportunity. To this point, I believe that shareholders of this large insurer should use the current dip as an opportunity to add to their MET positions.