Financial stock Jackson Financial is trying to break out of deep cup with a buy point of 46.93 on the MarketSmith daily chart. At the same time, investors who previously bought the 38.98 weekly buy point of this IBD 50 leader can look to take profits, locking in a 20% gain.
Shares rebounded from their 50-day line in January and have been on a strong winning streak with mild pullbacks. The rising moving averages reflect strong momentum that has generated 13 up days in the last 15 sessions.
Jackson Financial has a better-than-average 84 Composite Rating and a solid 94 Relative Strength Rating. Third-quarter sales grew an impressive 155% to $4.0 billion while earnings of $4.24 per share declined 18% year-over-year. It's a red flag that earnings have declined over the past three quarters, dropping the EPS score to 18.
Fourth-quarter earnings are due on Feb. 28.
Nonetheless, the financial stock is attracting top-performing mutual fund managers. More funds have been buying the stock over the past three quarters, yielding an excellent "A-" Accumulation/Distribution Rating. Institutional investors now hold 65% of outstanding shares.
Exchange traded funds Invesco KBW High Dividend Yield Financial ETF and SPDR S&P Bank ETF hold shares as well.
Jackson Financial Profile
The financial stock offers life, accident and health insurance, retirement products and annuities under a variety of labels, and is based out of Lansing, Mich. Jackson Financial operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks.
The retail segment includes retirement income options through fixed index, variable and immediate payout annuities. Through its institutional products, it offers guaranteed investment contracts, agreements issued with participation in the U.S. federal home loan program. Its institutional offerings also include medium-term funding agreement-backed notes.
Top-Rated Financial Stock
The financial stock ranks second in the Insurance-Diversified industry group, which hold 40th place among IBD's 197 industry groups. Other stocks in the group include Principal Financial, Hartford Financial and Manulife Financial.
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