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Primerica (PRI) Moves 3.8% Higher: Will This Strength Last?

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Primerica (PRI - Free Report) shares soared 3.8% in the last trading session to close at $155.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.4% loss over the past four weeks.

This second largest issuer of term life insurance coverage in North America continues to witness strong demand for protection products, driving sales growth and policy persistency.

Its pending acquisition of Etelequote Limited, a senior health insurance distributor of Medicare-related insurance policies, is expected to expand its financial services portfolio as well as augment middle-income focused client reach.

The company projects 2021 sales to be 10% higher than pre-pandemic levels.  Primerica estimates adjusted direct premiums to grow 13% in 2021.

This life insurance and financial products company is expected to post quarterly earnings of $2.88 per share in its upcoming report, which represents a year-over-year change of +18%. Revenues are expected to be $617.6 million, up 18.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Primerica, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PRI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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