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
) as a new lifetime high 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 $19.0 million.
- PRI has traded 1,340 shares today.
- PRI is trading at a new lifetime high.
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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 0.9%. PRI has a PE ratio of 16.9. Currently there is 1 analyst that rates Primerica a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Primerica has been 252,400 shares per day over the past 30 days. Primerica has a market cap of $2.8 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.36 and a short float of 2.4% with 3.78 days to cover. Shares are up 27.1% year-to-date as of the close of trading on Thursday.
rates Primerica as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- PRI's revenue growth trails the industry average of 21.6%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 63.82% to $62.34 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 33.89%.
- PRIMERICA INC's earnings per share improvement from the most recent quarter was slightly positive. 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 $2.77 versus $2.72 in the prior year. This year, the market expects an improvement in earnings ($3.27 versus $2.77).
- 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 26.20% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- You can view the full Primerica Ratings Report.