Opinions
The Panic-Proof Portfolio (Stockchase Research)
Jackson Financial Inc.
JXN-N
TOP PICK
Aug 03, 2023
Stock price when the opinion was issued
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JXN has performed very strong over the last year with the stock nearly tripling. The company sells annuities to retail investors in the United States. Sustained higher rates have been a demand tailwind for JXN. Operating earnings have been growing at a high rate across most segments. The stock pays a nice yield at 3% and is very cheap at 4.9x forward earnings. EPS is expected to continue to expand significantly in 2024 with analysts forecasting nearly 37% growth. The business generates significant cash flows but is also very highly levered. We think it looks interesting and is very cheap.
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Our PAST TOP PICK with JXN has triggered its stop at $86. To remain disciplined, we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment gain of 93%.
JXN is a US based retail annuity provider. It trades under 10x earnings, near book value, and supports a 20% ROE. Cash reserves are growing, while debt is retired and stock is bought back. We recommend placing a stop-loss at $26, looking to achieve $38 -- upside potential of 16%. Yield 7.2%
(Analysts’ price target is $37.80)