Manulife Financial (TSX:MFC) is continuing to outperform the broader market by a wide margin in 2024. MFC stock currently trades with 51% year-to-date gains compared to the S&P/TSX Composite Index's 18% advances so far this year. With this, it currently trades at $44.24 per share with a market cap of $78.1 billion. Besides its strong financial growth trends, declining interest rates have also contributed to Manulife stock's recent outperformance, as lower rates tend to support the profitability of insurance companies.

But with such a strong performance, the big question for investors is whether it's too late to buy in or if Manulife stock still has room to inch up. In this article, I'll break down what's behind Manulife stock's surge in 2024 and discuss whether it could still be a smart buy for your portfolio.

Manulife stock's rally in 2024

Despite global macroeconomic uncertainties, Manulife's financial performance in 2024 has been nothing short of impressive. Last week, the Toronto-based insurance giant reported record adjusted net profit for the third quarter, reaching $1.83 billion, up 8.2% YoY (year over year). This growth was driven by a range of factors, including significant increases in new business and strong global wealth management results, particularly in Asia.

Clearly, one of the key drivers behind Manulife stock's recent surge is the strong performance of its insurance businesses across Asia, Canada, and the United States. In Asia, where the company has a strong presence, the company saw record sales, with its annual premium equivalent sales up by 64% YoY and new business value advancing by 55% compared to the same quarter last year. In addition to its latest product launches for high-net-worth clients, Manulife's growth in Asia was primarily fueled by strong demand in markets like Hong Kong, mainland China, and Singapore.

Focus on expansion and digital initiatives

Manulife stock's solid performance this year could also be a result of its recent strategic focus on digital innovation and expansion into high-growth markets. In Asia, Manulife has been aggressively expanding its product lineup and digital capabilities to better serve its growing customer base. For example, the company recently rolled out a series of digital tools and mobile applications across key markets like Vietnam, Indonesia, and the Philippines. These tools not only make it easier for customers to manage their policies but also streamline premium payments and claim processes, which ultimately leads to customer engagement and satisfaction. In addition, these initiatives could help Manulife capture a larger share of the digitally savvy, younger demographic in these rapidly growing markets.

In the U.S. market, Manulife recently entered a strategic partnership with the tech firm Ethos to streamline the life insurance application process. Through the Ethos platform, Manulife is offering customers simplified access to its Simple Term product.

Is Manulife stock a good buy now?

Although Manulife stock has seen solid gains this year, you may wonder if it still offers upside potential or if it's already reached a peak. While short-term macroeconomic challenges remain, Manulife's growth trajectory, strategic initiatives, and strong fundamentals suggest the stock may still have room to run. In addition to its upside potential, Manulife's stable annualized dividend yield of 3.6% makes it an even more attractive stock for income-focused, long-term investors.