Here's Why You Should Add Primerica (PRI) to Your Portfolio

Core Insights - Primerica Inc. (PRI) is positioned to benefit from its strong portfolio, market presence, and capital position, making it a compelling investment opportunity [1] - The company has experienced a 17.6% increase in earnings over the past five years, significantly outperforming the industry average of 5.9% [1] Financial Performance - Shares of Primerica have gained 26.4% year to date, surpassing the industry's increase of 12.4%, the Finance sector's rise of 11.9%, and the S&P 500 composite's increase of 16.9% [3] - The Zacks Consensus Estimate for 2024 earnings is $17.92 per share, reflecting an 11.5% increase on revenues of $3 billion, while the 2025 estimate is $19.96 per share, indicating an 11.4% increase on revenues of $3.1 billion [6] Profitability Metrics - Primerica's trailing 12-month Return on Equity (ROE) stands at 27.8%, outperforming the industry average of 15.5% [7] - The return on invested capital for the trailing 12 months is 7.2%, significantly better than the industry average of 0.7% [7] Growth Drivers - Approximately 48% of middle-income Americans are prepared for retirement, indicating strong demand for protection products, which is expected to drive sales growth [8] - The company anticipates a more than 5% increase in its sales force size in 2024 to capitalize on growth opportunities [8] - Primerica expects low single-digit growth in Term Life policies and about 15% growth in Investment and Savings Products sales [9] Strategic Decisions - The company has decided to exit the senior health market to focus resources on more promising growth areas [10] - Primerica benefits from an improved interest rate environment, which is expected to enhance net investment income [11] Shareholder Value Enhancement - The company has a history of increasing dividends annually, with a 10-year CAGR of 16.8%, and has $173.2 million worth of shares remaining under authorization for buybacks [13]