Torchmark (TMK) Scales 52-Week High On Strong Q2 Results

On Aug 23, 2016, shares of Torchmark Corporation (NYSE:TMK) reached a 52-week high of $63.11 driven by strong second-quarter 2016 results. About 0.3 million shares exchanged hands in the last trading session and the stock finally closed at $62.97, up 0.40%. Year to date, the stock has returned 10.16%, which is above 6.99% returned by the S&P 500.

In the second quarter, Torchmark delivered operating earnings per share of $1.11 that beat the Zacks Consensus Estimate by a penny. The bottom line also improved 7.8% year over year on the back of higher premium contribution from Life as well as Health segments. Lower share count due to continuous buybacks also drove the upside.

With respect to surprise trend, this Zacks Rank #3 (Hold) life insurer delivered positive surprises in three of the last four quarters, with an average beat of 0.7%.

Revenues too improved on the back of growth in Life and Health Insurance premiums as well as higher net investment income.

Moreover, the company’s operating fundamental has been displaying strength. Agent count, which is an integral part of the company’s operations, remained strong and Torchmark projects agent count between 6,650 and 6,850 by year-end 2016.

The direct response operations at Global Life have also shown consistent growth with improving Life premiums.

Banking on its solid operational performance, Torchmark engages in shareholder friendly moves. By virtue of its intelligent capital management strategy, the life insurer generated 83% return for its investors over the past 10 years.

Based on the company’s solid earnings, the Zacks Consensus Estimate for 2016 inched up 0.5% to $4.46 in the last 30 days. The expected long-term earnings growth is currently pegged at 7.3%.

TORCHMARK CORP Price and Consensus

TORCHMARK CORP Price and Consensus | TORCHMARK CORP Quote

Stocks to Consider

Some better-ranked life insurance stocks are Health Insurance Innovations, Inc. (NASDAQ:HIIQ) , Genworth Financial, Inc. (NYSE:GNW) and Allied Primerica, Inc. (NYSE:PRI) . While Health Insurance Innovations sports a Zacks Rank #1 (Strong Buy), both Genworth Financial and Allied Primerica hold a Zacks Rank #2 (Buy).