Torchmark (TMK) 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 Torchmark ( TMK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Torchmark 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 $33.2 million.
  • TMK has traded 5,886 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 Life Insurance, Health Insurance, and Annuities segments. The stock currently has a dividend yield of 0.9%. TMK has a PE ratio of 13.7.

The average volume for Torchmark has been 419,400 shares per day over the past 30 days. Torchmark has a market cap of $7.1 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.26 and a short float of 2.1% with 4.51 days to cover. Shares are up 4.3% 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 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, solid stock price performance, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although TMK's debt-to-equity ratio of 0.30 is very low, it is currently higher than that of the industry average.
  • 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 25.17% 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 16.5% 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, TORCHMARK CORP increased its bottom line by earning $5.70 versus $5.43 in the prior year. This year, the market expects an improvement in earnings ($6.23 versus $5.70).
  • 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, TORCHMARK CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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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