Today’s recommendation comes from Sam Subramanian’s AlphaProfit. To reduce your risk, try to buy this recommendation on a dip below his buy below price of $27.25.
“Primerica, Inc. (PRI, $29) is benefiting from strong term insurance sales. In the second quarter, its revenue and net income rose 8% and 23%, respectively. EPS exceeded analysts’ forecasts by 10%. Confident of long-term growth, Primerica has approved a $75 million share buy-back program and raised its dividend by 40%.
“Spun off from Citigroup, Primerica is increasing control by buying back Warburg Pincus’ stake. Primerica shares suit conservative investors seeking growth-at-a-reasonable-price. They trade at a forward P/E of 10 versus prospects for 17% EPS growth in the next 12 months. Buy Below $27.25. Sell Above $29.15. Stop Loss: $18.25. Risk: Average.”
- Dr. Sam Subramanian, AlphaProfit Sector Investors’ Newsletter, October 2012