![]() ![]() The Zacks Consensus Estimate for the current year has surged 0.6% over the past month. The current-year earnings estimates for Primerica have been revising upward. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The company's annualized cash flow growth rate has been 13.5% over the past 3-5 years versus the industry average of 7.7%.īeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. In fact, the rate compares to the industry average of -20.7%. Right now, year-over-year cash flow growth for Primerica is 8.8%, which is higher than many of its peers. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds. The company's EPS is expected to grow 34% this year, crushing the industry average, which calls for EPS growth of 23.1%.Ĭash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. While the historical EPS growth rate for Primerica is 13.7%, investors should actually focus on the projected growth. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While there are numerous reasons why the stock of this life insurance and financial products company is a great growth pick right now, we have highlighted three of the most important factors below:Īrguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Research shows that stocks carrying the best growth features consistently beat the market. The company not only has a favorable Growth Score, but also carries a top Zacks Rank. Primerica (PRI) is one such stock that our proprietary system currently recommends. However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. But finding a growth stock that can live up to its true potential can be a tough task.īy their very nature, these stocks carry above-average risk and volatility. Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. ![]()
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