Published on 15 Apr 2024 on Zacks via Yahoo Finance
Here's Why You Should Stay Invested in Primerica (PRI) Stock
Primerica's PRI compelling portfolio, strong market presence, sturdy distribution channel and solid capital position poise it well for growth. These, coupled with optimistic growth projections, make it worth retaining in one’s portfolio.Shares of this Zacks Rank #3 (Hold) company have rallied 7.9% year to date, outperforming 1.7%, 0.4% and 7.6% growth of the industry, the Finance sector and the Zacks S&P 500 composite, respectively, in the same period. It has a VGM Score of B.The Zacks Consensus Estimate for 2024 earnings has moved 1 cent north in the past seven days, reflecting analysts’ optimism. Primerica envisions being a successful senior health business while continuing to enhance its shareholders’ value.The Zacks Consensus Estimate for Primerica’s 2024 earnings is pegged at $17.76 per share, indicating an increase of 10.5% on 5.6% higher revenues of $3 billion. The Zacks Consensus Estimate for Primerica’s 2025 earnings is pegged at $19.51 per share, indicating an increase of 9.8% on 4.6% higher revenues of $3.1 billion. Earnings of this second-largest issuer of term-life insurance coverage in North America have risen 17.6% in the last five years, outperforming the industry average of 5.6%.Return on equity (ROE), a profitability measure to identify how efficiently a company is utilizing its shareholders’ funds, has been improving over the last several years. PRI’s trailing 12-month ROE of 27.8% is better than the industry average of 15.4%.Also, the return on invested capital in the trailing 12 months was 7%, better than the industry average of 0.7%, reflecting PRI’s efficiency in utilizing funds to generate income.
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