JXN is in stage #2. The stock bounced at 200-day MA support. The recovery from the recent “banking crisis” selloff continues. The price is “hugging” the 200-day MA and the upward-moving trend line. At the current level, the stock is extremely undervalued, but it may take several years before we see the stock reach its valuation (the valuation may also drop before the price gets there). The stock pays good dividends and at the current price, it is a buy.
The company is a spinoff of Purdue insurance company, so its revenue track record is short and so far, somewhat choppy. Despite the choppiness, the company seems to be growing its revenue:
Free cash flow is also growing:
The company pays 2.48 annual dividends (6.75%) and despite its short history, increased the dividend twice:
Since the spinoff, the company also reduced shares outstanding significantly:
The company has plenty of cash and very little debt, so it is not affected by the current interest rates. This is very good news. With rising interest rates, we want to be investing in companies that have little to no exposure to debt (leveraged). JXN is one of them:
The stock is well undervalued, and it offers an astounding 745% rate of return by 2025 (119% annualized return). The question is when investors recognize it and start buying this stock up.
The stock is now AGGRESSIVE BUY
This post was published in our newsletter to our subscribers on Saturday, April 15th, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.
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