Why Manulife Financial Corp. Jumped 4.13% on Thursday

Manulife Financial Corp. (TSX:MFC)(NYSE:MFC), one of the largest financial services companies in the world, announced its third-quarter earnings results after the market closed on Wednesday, and its stock responded by rallying 4.13% in Thursday?s trading session. Let?s break down the quarterly results and the fundamentals of its stock to determine if we should be long-term buyers today.

The results that sent the stock higher

Here?s a quick breakdown of the 10 of most notable financial statistics from Manulife?s three-month period ended September 30, 2017, compared with the same period in 2016:

Metric	Q3 2017	Q3 2016	Change
Net premium income	$7.24 billion	$7.20 billion	0.6%
Net investment income	$2.15 billion	$4.34 billion	(50.5%)
Other revenue	$2.54 billion	$2.92 billion	(12.9%)
Total revenue	$11.93 billion	$14.46 billion	(17.5%)
Core earnings	$1.09 billion	$996 million	8.9%
Diluted core earnings per share (EPS)	$0.53	$0.49	8.2%
Core return on equity	10.6%	9.8%	80 basis points
Assets under management and administration	$1.01 trillion	$966 billion	4.1%
Wealth and Asset Management net flows	$4.01 billion	$2.69 billion	48.8%
Book value per share	$19.68	$19.92	(1.2%)

What should you do with Manulife?s stock now?

It was a solid quarter overall for Manulife, and its core EPS beat analysts? expectations, which called for $0.52, so I think the 4.13% rally on Thursday was warranted. I also think the stock still represents a great investment opportunity for the long term for two fundamental reasons.

First, it?s still undervalued. Manulife?s stock has risen more than 14% year to date, but it still trades at just 12.2 times fiscal 2017?s estimated EPS of $2.21 and only 11.3 times fiscal 2018?s estimated EPS of $2.43, both of which are inexpensive compared with its five-year average multiple of 16; these multiples are also inexpensive given its current earnings-growth rate and its estimated 12.6% long-term earnings-growth rate.

Second, it has a high yield and a track record of dividend growth. Manulife currently pays a quarterly dividend of $0.205 per share, equating to $0.82 per share on an annualized basis, which gives it a 3% yield. Foolish investors must also note that the company has raised its annual dividend payment each of the last three years, and that its 10.8% hike in February has it on track for 2017 to mark the fourth consecutive year with an increase.

Manulife?s stock is up more than 24% since I first recommended it in February 2015, which does not even include reinvested dividends, and I think it still represents a great long-term investment opportunity today, so take a closer look and consider adding it to your portfolio.

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Fool contributor Joseph Solitro has no position in any stocks mentioned.