Bull’s Eye: Protective Life (PL)

Try PL for a low-risk short-term trade

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Protective Life PL Life & Health Insurance 8.2 +47.50% $40.61

Why We Like The Stock:

Protective Life (PL) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Life and health insurance stocks have been one of the best performing sub-industries of 2013. CNO Financial Group (CNO), StanCorp Financial Group (SFG), Symetra Financial (SYA), and PL all sport long-term uptrends and have been straight up this year.

One of the easiest ways to buy (and one of our favorite ways) is to take a runner on a pullback. Here with PL, we have just that. The stock recently hit intraday highs of $46 on August 1, but has since pulled back and based at $42. The stock is operating above its 50-day moving average, and seems to be calmly consolidating at current prices. With a beautiful technical chart and a +10% short-term upside, we like PL here for a low-risk trade.

We Would Be Buyers:

At the current price (~$42.44), or on a pull-back to the 50-day moving average ($41.35).

Company Profile:

Protective Life Corporation is a holding company. The company, along with its subsidiaries, provides financial services through the production, distribution, and administration of insurance and investment products. The company’s operating segments include Life Marketing, Acquisitions, Annuities, Stable Value Products, and Asset Protection. Protective Life Insurance Company (PLICO) is the company’s subsidiary.

Stock Rating: 8.2

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Protective Life – Last Three Months

pl 1 Bulls Eye: Protective Life (PL)

Protective Life – Last 12 Months

pl 2 Bulls Eye: Protective Life (PL)

Protective Life – Last Five Years

pl 3 Bulls Eye: Protective Life (PL)

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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