Seeking Alpha: A Few Flickers From Torchmark

Until September began, my March call that Torchmark (NYSE:TMK) still offered some upside was looking okay, as the stock was doing a little better than other insurance names like Prudential (NYSE:PRU), MetLife (NYSE:MET), and Lincoln National (NYSE:LNC). After the S&P revised its outlook lower, though, the shares have shed a few percentage points on worries that management may have to pull back a bit on buybacks.

I suspect that the S&P action was less relevant from a fundamental perspective and more likely a good excuse for managers to take some gains on an insurance stock that had risen close to 60% over the past two years. What's more, there are a few suggestions in recent earnings reports that growth may be a little harder to come by in the short-to-medium term. While I still like the fundamentals here, and the shares haven't exactly shot through my prior target, this may be a case where investors want to shop around a bit.

Read the full article here:
A Few Flickers From Torchmark

Seeking Alpha: Isn't Torchmark Supposed To Be Defensive?

Life and supplemental health insurance company Torchmark (TMK) is unusual in a lot of ways. Not only does the company have a pretty exceptional history of returns on equity, those returns have been remarkably consistent. The company's underwriting risk is low and not many companies can compete in its core life insurance markets. What's perhaps even stranger is that this supposedly defensive insurance stock is doing quite well in a market where conditions are seen as improving for the sector.

Even though Torchmark would normally have less to gain from the improving economy and rising rates, these shares may yet be undervalued. Torchmark's different model makes P/TBV valuation almost useless, but the shares look surprisingly cheap on the basis of an excess return model. I don't normally think to look at the 52-week high list for bargains, but Torchmark could still offer some meaningful upside from today's level.

Please continue here:
Isn't Torchmark Supposed To Be Defensive?

Investopedia: Can Torchmark Be What It Used To Be?

Investors have definitely warmed up to insurance companies in recent months, as a quick look at the charts of property and casualty insurers like Allstate (NYSE:ALL) and Progressive (NYSE:PGR) will show. The same is true for the life insurers, as stocks like Lincoln National (NYSE:LNC) and MetLife (NYSE:MET) (even with the disappointment tied to the Fed's stress test) have done reasonably well.

Where does that leave Torchmark (NYSE:TMK)? Torchmark is an odd insurance company, as it offers fairly simple products and focuses in part on a competitive cost structure. While the stock is up nearly 50% over early October lows, current analyst targets seem to suggest that the future will not be nearly as strong as the past. If Torchmark can reclaim past returns on equity (ROE), though, the returns could be still be significant.

Continue here:
http://stocks.investopedia.com/stock-analysis/2012/Can-Torchmark-Be-What-It-Used-To-Be-TMK-MET-LNC-AFL0321.aspx