Jackson Financial is the IBD Stock Of The Day. JXN stock broke out Tuesday in heavy volume.
The Lansing, Mich.-based company offers retirement planning and a range of annuity products. Annuities are financial products, typically for retirees, that produce a steady income when needed.
Jackson Financial was part of Prudential Financial before a "demerger" in September. It currently trades on the New York Stock Exchange.
Insurance stocks are doing especially well with interest rates racing higher. Investors expect the Federal Reserve to keep boosting interest rates throughout this year to fight inflation. That's good news for JXN stock, as it becomes easier to make a profit on existing fixed-return annuity policies.
JXN Stock Breaks Out
Shares rose 6.3% to 45.20 on the stock market today after hitting 46.21 intraday. JXN stock is breaking out of a double-bottom base with a 44.76 buy point. The stock moved in huge volume, a strong signal.
The relative strength line, which tracks performance vs. the S&P 500 index, is at a new high. That's a bullish sign, corroborating a breakout.
Other insurers are also doing well. American International Group briefly topped a 63.64 buy point Tuesday from a flat base before paring gains.
Prudential stock is working on a consolidation that could turn into a cup base after this week with a 124.32 buy point.
Warren Buffett's Berkshire Hathaway, which owns several insurance firms, BNSF Railway and a big stake in Apple, nudged higher Tuesday. BRKB stock is extended out of buy range and is headed toward profit-taking range. Berkshire stock broke out of a flat base with a 295.75 buy point in December and keeps hitting new highs.
Jackson Financial has a 95 out of a 99 Composite Rating. But it has a weaker EPS Rating of 80. Jackson had losses in 2019 and 2020, but earnings rocketed last year. Analysts expect Jackson Financial's earnings per share to fall significantly in 2022, though estimates are improving.
The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should generally focus on stocks with a Composite Rating of 90 or higher.
JXN stock is the top-ranked stock in IBD's Insurance-Diversified group. AIG stock is ranked second.
Earlier this month, Jackson reported fourth-quarter earnings that topped analyst estimates.
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