Trade-Ideas: Torchmark Corporation (TMK) Is Today's New Lifetime High Stock

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 $26.3 million.
  • TMK has traded 253,353 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 12.8.

The average volume for Torchmark Corporation has been 374,700 shares per day over the past 30 days. Torchmark has a market cap of $6.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.26 and a short float of 1.7% with 4.49 days to cover. Shares are up 39.6% year to date as of the close of trading on Friday.

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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. 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 7.7%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels.
  • 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.
  • 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 43.26% 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 9.1% 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).

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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