Trade-Ideas LLC identified

Primerica

(

PRI

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Primerica as such a stock due to the following factors:

  • PRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.3 million.
  • PRI has traded 186,240 shares today.
  • PRI is trading at 22.57 times the normal volume for the stock at this time of day.
  • PRI is trading at a new high 9.12% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on PRI:

Primerica, Inc., together with its subsidiaries, distributes financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. The stock currently has a dividend yield of 1.6%. PRI has a PE ratio of 12. Currently there are 4 analysts that rate Primerica a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Primerica has been 404,900 shares per day over the past 30 days. Primerica has a market cap of $2.1 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.09 and a short float of 18.5% with 32.10 days to cover. Shares are down 9.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Primerica as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its 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 18.6%. Since the same quarter one year prior, revenues slightly increased by 2.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PRIMERICA INC has improved earnings per share by 15.5% 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, PRIMERICA INC increased its bottom line by earning $3.71 versus $3.26 in the prior year. This year, the market expects an improvement in earnings ($4.15 versus $3.71).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Insurance industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $45.47 million to $47.95 million.
  • 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, PRIMERICA INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $118.10 million or 12.63% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -34.70%.

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