Strength Seen in Abacus Life, Inc. (ABL): Can Its 5.4% Jump Turn into More Strength?
Abacus Life, Inc. (ABL) shares ended the last trading session 5.4% higher at $10.40. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.1% loss over the past four weeks.
ABL stays focused on consolidating its position as a leading market maker and global alternative asset manager. The strength of partnerships with carriers and reinsurers remains a key contributor to its performance. Also, along with core business of acquiring life insurance policies, the insurer are focused on expanding complementary lifespan-based financial products that bodes well for growth.
The definitive agreement to acquire Carlisle Management Company, a premier Luxembourg- based investment manager in the life settlement space for approximately $200 million will add about $2 billion in assets under management. This apart Carlisle further enhances Abacus's offering to institutional investors seeking attractive risk adjusted returns with low correlation to other asset classes. It also agreed to buy FCF Advisors, which has approximately $600 million in assets under management. This buyout will align with Abacus’ ongoing expansion of ABL Wealth and its suite of products.
This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +1200%. Revenues are expected to be $29.53 million, up 39.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Abacus Life, Inc., the consensus EPS estimate for the quarter has been revised 5.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ABL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Abacus Life, Inc. is a member of the Zacks Insurance - Life Insurance industry. One other stock in the same industry, Primerica (PRI), finished the last trading session 0.3% lower at $255.84. PRI has returned -1.1% over the past month.
Primerica's consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $4.71. Compared to the company's year-ago EPS, this represents a change of +10.1%. Primerica currently boasts a Zacks Rank of #2 (Buy).
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