Protective Life (PL) Hits New Lifetime High Today

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

  • PL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.7 million.
  • PL has traded 5,165 shares today.
  • PL is trading at a new lifetime high.

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More details on PL:

Protective Life Corporation, together with its subsidiaries, provides financial services primarily in the United States. The company engages in the production, distribution, and administration of insurance and retirement products. The stock currently has a dividend yield of 1.5%. PL has a PE ratio of 10.6. Currently there are 3 analysts that rate Protective Life a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Protective Life has been 439,600 shares per day over the past 30 days. Protective Life has a market cap of $4.1 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.83 and a short float of 2.7% with 5.57 days to cover. Shares are up 4% 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 Protective Life as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 19.1%. Since the same quarter one year prior, revenues rose by 26.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 79.26% and other important driving factors, this stock has surged by 51.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 on the basis of return on equity, PROTECTIVE LIFE CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • PROTECTIVE LIFE CORP reported significant earnings per share improvement 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PROTECTIVE LIFE CORP increased its bottom line by earning $4.86 versus $3.64 in the prior year. For the next year, the market is expecting a contraction of 1.2% in earnings ($4.80 versus $4.86).

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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