On Jan 17, Primerica, Inc. ( PRI ) 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 markets.
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%.
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