Shares of Canadian life insurance firm Manulife Financial (TSX:MFC) are in the midst of a magnificent bull run that began last autumn. Undoubtedly, whenever you can catch shares of a firm that has been in consolidation mode (flatlining) for many years, you may just be able to score solid results in the face of that much-anticipated breakout.

Indeed, Manulife's breakout moment happened close to a year ago. However, given how much the fundamentals have improved (the same goes for the industry and macro environment), I'd argue that MFC stock is still a worthy buy on strength. Either way, the life insurers can be much better buys on the way up than on the way down (or sideways).

Manulife stock still looks rather cheap despite posting an incredible TSX-beating gain for 2024

In any case, MFC stock still stands out as an absurdly cheap stock at just 17.5 times trailing price to earnings. And that's despite posting a nearly 70% gain in a year. Though only time will tell if the next leg higher brings Manulife above the $50 per share level, I think that if the run has legs if Manulife can keep posting robust growth.

Looking to the year ahead, shares of the $72.6 billion life insurer go for close to 10.0 times forward price to earnings. That's incredibly cheap for a company that seems to have the tides turned ever so slightly back in its favour.

With the latest second quarter demonstrating resilience amid remaining pressures, I think that management deserves a nice round of applause from investors. If the firm can clock in such a core earnings beat in the face of broad pressures, just think of the magnitude of beat Manulife can post if all the winds are facing its back.

What about when interest rates decline?

Looking ahead, interest rates are bound to fall even further, and though a low-rate environment could be a thorn in the side of Manulife as it feels a bit of a margin squeeze in some areas, demand could pick up as the Canadian economy starts to really feel the relief from Bank of Canada rate reductions.

For investors keen on waiting for a near-term correction, perhaps the $36 per share level could serve as an entry point to watch for over the coming months. Indeed, any sudden surge can easily set the stage for a pullback, even if the firm under question is firing on all cylinders.

The Foolish bottom line on MFC

Though still cheap, Manulife has a slightly higher set of expectations to clear for its coming quarters. And with the stakes raised, I think that patient dip-buyers will get a moment to buy if they've missed out on the incredibly past-year run. Though I'm not against picking up a small chunk of shares today, I see a pretty strong level of support around the $36 range.

Either way, the 3.98% dividend yield certainly does look tempting for investors seeking the optimal mix of growth and passive income. Perhaps nibbling into a position between now and year's end makes sense for most.