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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Torchmark Corporation

(

TMK

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Torchmark Corporation as such a stock due to the following factors:

  • TMK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.4 million.
  • TMK has traded 109,761 shares today.
  • TMK is trading at a new lifetime high.

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More details on TMK:

Torchmark Corporation, through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand. The company operates in three segments: Life Insurance, Health Insurance, and Annuities. The stock currently has a dividend yield of 0.9%. TMK has a PE ratio of 13.7.

TheStreet Recommends

The average volume for Torchmark Corporation has been 432,900 shares per day over the past 30 days. Torchmark has a market cap of $7.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.21 and a short float of 1.6% with 2.97 days to cover. Shares are up 51% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Torchmark Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.0%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 46.11% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TMK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • TORCHMARK CORP has improved earnings per share by 5.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TORCHMARK CORP increased its bottom line by earning $5.43 versus $4.58 in the prior year. This year, the market expects an improvement in earnings ($5.70 versus $5.43).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market, TORCHMARK CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $278.52 million or 11.17% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.45%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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