On Jan 17,
) hit a 52-week high of $45.33. The momentum in the stock was
driven by the company's announcement regarding its sales force
initiatives for 2014, creating optimism among investors about
sales growth at the company.
The company is benefiting from its niche market position in the
middle income market segment which remains highly uderpenetrated.
The company is cashing on the opportunity to derive revenues from
a market which has been left abandoned by financial institutions,
which have shifted their focus to more affluent and mass affluent
Primerica continues to emphasize on initiatives in growing core
distribution and expanding product offerings to meet the needs of
middle-income families, in order to enhance shareholder value.
Alongside favorable market trends, the company's recent extension
of a strategic alliance with AGF Funds strengthens its market
position in Canada, boosting future growth prospects. Moreover,
strong expense management and effective return of capital are
deemed impressive by the investors and ratings agencies.
Primerica also outperformed the one-year S&P 500, which
posted an increase of 25.4% against a return of 39.1% clocked by
the company. Additionally, this life insurer delivered positive
earnings surprise of 2.6% in the last reported quarter.
Primerica is scheduled to release fourth-quarter and full year
2013 earnings during the first week of February. The Zacks
Consensus Estimate for fourth-quarter earnings is pegged at 77
cents per share, reflecting a year-over-year growth of 11.9%. Our
proven model also shows that Primerica is likely to beat earnings
estimate as it has the right combination of Zacks Rank #1 (Strong
Buy) and Earnings ESP of +2.60%.
For the full year, the company expects earnings of $2.91 which
translates into year-over-year growth of 4.0%.
Other Stocks to Consider
Some other insurers in the industry such as
CNA Financial Corp.
) carrying the same Zacks Rank as Primerica are worth
CNA FINL CORP (CNA): Free Stock Analysis
KEMPER CORP (KMPR): Free Stock Analysis
PARTNERRE LTD (PRE): Free Stock Analysis
PRIMERICA INC (PRI): Free Stock Analysis
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