Torchmark Since 1988

Here’s another in my long-run series, “boring stocks that have done amazingly well yet no one knows about.” This time, I’m featuring Torchmark (TMK). Here’s a description from Hoover’s:

Torchmark aims to be a beacon in the world of insurance. It is the holding company for a family of firms; its member companies specialize in lower-end individual life insurance and supplemental health insurance. Torchmark subsidiaries, which include flagship Liberty National Life, offer whole and term life insurance, supplemental health insurance, accidental death insurance, Medicare supplements, and long-term care health policies for the elderly. Its American Income Life sells life insurance policies to labor union and credit union members in the US, Canada, and New Zealand. Torchmark sells its products through direct marketing, as well as a network of exclusive and independent agents.

Sexy, right? Now check out the chart:

sc09102015

That’s a stellar record. Let me add that while I like Stockcharts, I’m not sure if their long-term charts are 100% accurate. Still, this seems to be reasonably close. In 1998, Torchmark spun-off Waddell & Reed Financial (WDR) which has also beaten the market.

Despite their great growth, Torchmark still isn’t terribly large. Their market cap is about $7 billion. They’re in the S&P 500, but their market cap is around 440th. I also like that Torchmark has an incredibly stable earnings line.

Posted by on September 10th, 2015 at 12:06 pm


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