Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Primerica, a financial services company serving middle-income families in the U.S. and Canada, reported a robust third quarter for 2024 with strong momentum and financial performance.</li><li>The company achieved a 21% increase in adjusted net operating income, totaling $193 million, and saw a notable 28% rise in diluted adjusted operating earnings per share to $5.68.</li><li>Solid cash flows enabled Primerica to repurchase $129 million worth of its own stock and distribute $31 million in dividends during the quarter, contributing to $463 million returned to shareholders for the year through buybacks and dividends.</li></ul>

Primerica, a financial services company serving middle-income families in the U.S. and Canada, reported a robust third quarter for 2024 with strong momentum and financial performance.The company achieved a 21% increase in adjusted net operating income, totaling $193 million, and saw a notable 28% rise in diluted adjusted operating earnings per share to $5.68.Solid cash flows enabled Primerica to repurchase $129 million worth of its own stock and distribute $31 million in dividends during the quarter, contributing to $463 million returned to shareholders for the year through buybacks and dividends.

Primerica Inc: Expanding Term Life and LDTI Strategies & Other Major Drivers

<ul><li>Primerica presented a robust performance in its second quarter of 2024 earnings report, reflecting solid growth metrics bolstered by strategic business maneuvers and consistent demand for financial products that cater to middle-income families in the U.S. and Canada.</li><li>Adjusted net operating income saw a 12% year-over-year increase to $163 million, while diluted adjusted operating earnings per share rose by 18% to $4.71, underscoring both stability and growth in key areas such as Term Life premiums and Investment and Savings Products segments.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Primerica presented a robust performance in its second quarter of 2024 earnings report, reflecting solid growth metrics bolstered by strategic business maneuvers and consistent demand for financial products that cater to middle-income families in the U.S. and Canada.Adjusted net operating income saw a 12% year-over-year increase to $163 million, while diluted adjusted operating earnings per share rose by 18% to $4.71, underscoring both stability and growth in key areas such as Term Life premiums and Investment and Savings Products segments.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Primerica Inc.: Will The Increased Product Sales in Investment and Savings Products Last? - Major Drivers

<ul><li>Primerica's first quarter of 2024 financial results demonstrated resilience amidst challenging economic conditions, although it faced underperformance in certain segments.</li><li>The company reported an adjusted net operating income of $137 million, which represents a 4% increase compared to the previous year, and adjusted operating income per share rose by 10% to $3.91.</li><li>These figures reflect the robust performance of Primerica's core businesses, Term Life and Investment and Savings Products (ISP), along with notable growth in the sales force.</li></ul>

Primerica's first quarter of 2024 financial results demonstrated resilience amidst challenging economic conditions, although it faced underperformance in certain segments.The company reported an adjusted net operating income of $137 million, which represents a 4% increase compared to the previous year, and adjusted operating income per share rose by 10% to $3.91.These figures reflect the robust performance of Primerica's core businesses, Term Life and Investment and Savings Products (ISP), along with notable growth in the sales force.

Primerica Inc.: Initiation of Coverage - These Are The 4 Fundamental Factors Driving Their Performance! - Financial Forecasts

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Ongoing developments have been almost exclusively of the risk-on variety ever since we discussed that risk/reward favored buyers in late-October (10/24/23 and 10/31/23 Compass reports).</li>
<li>The latest risk-on developments include the Russell2000 (IWM) and DJI breaking above resistances of $180 and 35,650, to go along with bullish 9-month RS reversals for small-, mid-, and micro-caps.</li>
<li>Breadth improvement and broadening participation was a big reason why we recommended buying the IWM when it was testing $162-$163 support (10/31/23 Compass). We remain bullish</li>
</ul>


Ongoing developments have been almost exclusively of the risk-on variety ever since we discussed that risk/reward favored buyers in late-October (10/24/23 and 10/31/23 Compass reports).
The latest risk-on developments include the Russell2000 (IWM) and DJI breaking above resistances of $180 and 35,650, to go along with bullish 9-month RS reversals for small-, mid-, and micro-caps.
Breadth improvement and broadening participation was a big reason why we recommended buying the IWM when it was testing $162-$163 support (10/31/23 Compass). We remain bullish


Upgrading Real Estate, Transportation to Market Weight; Smid-Caps With Bullish RS Reversals

<ul>
<li>Expectations since late-September remain unchanged; if $SPX is above 4165-4200/200-day MA, we're bullish, as most signs point to this being a normal pullback within the ongoing bullish trend in SPX.</li>
<li>As discussed last week (10/11/23), we have growing confidence that lows are likely in on the SPX, which made a low at 4216 (with 4200 hit exactly overnight 10/4/23).</li>
<li>We also discussed Russell 2000 breadth bottoming last week, and this has continued with bullish breadth divergences on Russell 2000 % of stocks above their 50- and 200-day MAs</li>
</ul>


Expectations since late-September remain unchanged; if $SPX is above 4165-4200/200-day MA, we're bullish, as most signs point to this being a normal pullback within the ongoing bullish trend in SPX.
As discussed last week (10/11/23), we have growing confidence that lows are likely in on the SPX, which made a low at 4216 (with 4200 hit exactly overnight 10/4/23).
We also discussed Russell 2000 breadth bottoming last week, and this has continued with bullish breadth divergences on Russell 2000 % of stocks above their 50- and 200-day MAs


Russell 2000 With Bullish Breadth Divergences; Buys in Insurance and Health Care Distributors

United States

Primerica Inc. distributes financial products to middle income households in North America. The Company products include term life insurance, mutual funds, variable annuities and other financial products, which are distribute primarily on behalf of third parties.

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Primerica Inc (PRI US)

Primerica Inc: Expanding Term Life and LDTI Strategies & Other Major Drivers

Primerica, a financial services company serving middle-income families in the U.S. and Canada, reported a robust third quarter for 2024 with...

Baptista Research

Primerica Inc.: Will The Increased Product Sales in Investment and Savings Products Last? - Major Drivers

Primerica presented a robust performance in its second quarter of 2024 earnings report, reflecting solid growth metrics bolstered by strategic...

Baptista Research

Primerica Inc.: Initiation of Coverage - These Are The 4 Fundamental Factors Driving Their Performance! - Financial Forecasts

Primerica's first quarter of 2024 financial results demonstrated resilience amidst challenging economic conditions, although it faced...

Baptista Research

Upgrading Real Estate, Transportation to Market Weight; Smid-Caps With Bullish RS Reversals

Upgrading Real Estate $XLRE $VNQ and Transportation $IYT $XTN to Market Weight; Smid-Caps With Bullish RS Reversals as $SPX, $COMP Take a Pause;...

Vermilion Research

Russell 2000 With Bullish Breadth Divergences; Buys in Insurance and Health Care Distributors

Our view since late Sept remains unchanged: if $SPX is above 4165-4200 and the 200-day MA, we are bullish, as most signs point to this being a...

Vermilion Research

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