Manulife Financial Corp. (TSX:MFC)(NYSE:MFC), one of the world’s largest financial services companies and one of the 10-largest life insurers by market capitalization, has disappointed investors in 2015. It has fallen more than 7.5%, but it has the potential to rebound and head significantly higher in both the short and long term. Let’s take a look at three of the primary reasons why I think this could happen and why you should be a long-term buyer of the stock today.

1. Its double-digit growth in the first half could support a quick rebound

On the morning of August 6, Manulife released strong earnings results for its three and six-month periods ending on June 30, 2015, but its stock has responded by falling over 12% in the weeks since, primarily due to the downturn in the market. Here’s a summary of eight of the most notable statistics from the first half of fiscal 2015 compared with the first half of fiscal 2014:

  1. Core earnings increased 19.6% to $1.7 billion
  2. Diluted core earnings per share increased 13.7% to $0.83
  3. Revenue before realized and unrealized gains and losses increased 20.5% to $21.76 billion
  4. Net premium income increased 31.5% to $10.98 billion
  5. Investment income increased 6.9% to $5.86 billion
  6. Assets under management and administration increased 38.6% to $883 billion
  7. Cash provided by operating activities increased 31.6% to $5.49 billion
  8. Book value per common share increased 19.9% to $17.89

2. Its stock trades at inexpensive forward valuations

At current levels, Manulife’s stock trades at just 11.4 times fiscal 2015’s estimated earnings per share of $1.79 and a mere 9.8 times fiscal 2016’s estimated earnings per share of $2.08, both of which are very inexpensive compared with its five-year average price-to-earnings multiple of 54.3 and the industry average multiple of 22.4.

I think Manulife’s stock could consistently trade at a fair multiple of at least 15, which would place its shares upwards of $26 by the conclusion of fiscal 2015 and upwards of $31 by the conclusion of fiscal 2016, representing upside of more than 26% and 51%, respectively, from today’s levels.

3. It has a 3.3% dividend yield with room for growth

Manulife pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 3.3% yield at current levels, and this is significantly higher than the industry average yield of 1.9%. It is also worth noting that the company has increased its dividend twice since 2014, and its strong operational performance could allow for another increase in the very near future. 

Should you start buying shares of Manulife today?

I think Manulife Financial could be one of the market’s top performing stocks from this point forward. Its strong earnings results in the first half could support a quick rebound, its stock trades at inexpensive forward valuations, and it has a 3.3% dividend yield, which will amplify the potential returns for investors. All Foolish investors should take a closer look and strongly consider beginning to scale in to positions today.

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