In This Article:
Primerica, a Zacks Rank #1 (Strong Buy), provides financial services to middle-income households in the United States and Canada. The company’s mission is to serve families by helping them make informed financial decisions and providing them with a strategy and means to gain financial independence.
PRI stock is displaying relative strength, buoyed by a bullish move in the broader financial sector. The price movement is a sign of strength as we head further into the new year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
Primerica is part of the Zacks Insurance – Life Insurance industry group, which currently ranks in the top 36% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has over the past year.
Note the favorable metrics for this industry group below:
Image Source: Zacks Investment Research
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Company Description
Primerica assists its customers in meeting their needs for term life insurance, mutual funds, retirement plans, variable annuities, and other financial products. Its representatives utilize a proprietary financial needs analysis (FNA) tool and an educational approach to demonstrate how its products can help achieve their clients’ goals.
In addition, Primerica offers mortgage loans, homeowners’ insurance, prepaid legal services, and identity theft services. Founded in 1927 and headquartered in Duluth, Georgia, the company distributes and sells its products through licensed sales representatives.
Growth in policies issued and equity market appreciation are aiding its results. Primerica hasn’t shied away from divesting non-core assets to improve profitability.
Primerica should benefit from the strong demand for protection products. Its business model makes it well-positioned to cater to the middle-income market's increased demand for financial security in the current market environment.
Earnings Trends and Future Estimates
Primerica PRI has built up an impressive reporting history, surpassing earnings estimates in two of the past three quarters. The company delivered a trailing four-quarter average surprise of 4.89%.