U.S. markets open in 43 minutes
  • S&P Futures

    4,132.00
    -51.50 (-1.23%)
     
  • Dow Futures

    34,394.00
    -274.00 (-0.79%)
     
  • Nasdaq Futures

    13,095.50
    -261.25 (-1.96%)
     
  • Russell 2000 Futures

    2,160.20
    -49.40 (-2.24%)
     
  • Crude Oil

    64.08
    -0.84 (-1.29%)
     
  • Gold

    1,836.30
    -1.30 (-0.07%)
     
  • Silver

    27.47
    -0.02 (-0.08%)
     
  • EUR/USD

    1.2168
    +0.0034 (+0.28%)
     
  • 10-Yr Bond

    1.6150
    +0.0130 (+0.81%)
     
  • Vix

    22.00
    +5.31 (+31.82%)
     
  • GBP/USD

    1.4151
    +0.0030 (+0.21%)
     
  • USD/JPY

    108.6020
    -0.2390 (-0.22%)
     
  • BTC-USD

    55,374.84
    -2,422.18 (-4.19%)
     
  • CMC Crypto 200

    1,574.74
    +13.44 (+0.86%)
     
  • FTSE 100

    6,931.09
    -192.59 (-2.70%)
     
  • Nikkei 225

    28,608.59
    -909.71 (-3.08%)
     

Primerica (PRI) Surges 85% in a Year: Will the Rally Last?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Primerica, Inc. PRI shares have gained 84.8% in a year compared with the industry's increase of 10.8% and the Finance sector’s increase of 61.9%. The Zacks S&P 500 composite has risen 61.7% in the said time frame. With market capitalization of $5.8 billion, average volume of shares traded in the last three months was 0.2 million.



A compelling product portfolio, strong market presence and solid capital position continue to drive Primerica. The company has a decent surprise history of beating earnings estimates in three of the last four reported quarters.

Return on equity of 23.3% in the trailing twelve months was better than the industry average of 13.1%, reflecting the company’s efficiency in utilizing shareholders’ fund.

Will the Bull Run Continue?

The Zacks Consensus Estimate for 2021 and 2022 earnings has moved up 1.4% and 4.7% in the past 60 days, reflecting analysts’ optimism, indicating year-over-year increase of 13.6% and 11.2%, respectively.

The company continues to witness strong demand for term life insurance products. Also, the pandemic has resulted in stronger demand for insurance protection. This in turn should drive growth opportunities for the life insurer. Riding on strong sales and persistency in 2020, Primerica estimates adjusted direct premiums to grow between 12% and 13% in 2021.

In fact, the company noted growth in business across recruiting, life sales and investment sales in January 2021.

This Zacks Rank #3 (Hold) second largest issuer of term life insurance coverage in North America boasts a strong capital position. The life insurer has raised dividend 10 times in the last nine years. Its board also approved a $300 million of share repurchases through June 2022. It has a track record of total stockholder return consistently outperforming the S&P 500 Index.

Primerica exited 2020 with liquidity of $350 million and Primerica Life Insurance Company statutory risk-based capital ratio of about 400%.

The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors.

Stocks to Consider

Some better-ranked stocks from the same space include Athene ATH, Sun Life Financial SLF and James River Group Holdings JRVR, each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Athene delivered an earnings surprise of 31.9% in the last reported quarter.

Sun Life Financial delivered an earnings surprise of 17.71% in the last reported quarter.

James River Group delivered an earnings surprise of 6.86% in the last reported quarter.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sun Life Financial Inc. (SLF) : Free Stock Analysis Report

Primerica, Inc. (PRI) : Free Stock Analysis Report

James River Group Holdings, Ltd. (JRVR) : Free Stock Analysis Report

Athene Holding Ltd. (ATH) : Free Stock Analysis Report

To read this article on Zacks.com click here.