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This Insurance Company Is Pushing 52-Week Highs

·3 min read

While the majority of the market is still red year-to-date, there are still stocks out there well in the green, providing investors with supercharged returns.

One such stock, Unum Group UNM, is up more than 50% year-to-date, absolutely crushing the S&P 500’s performance, as shown in the chart below.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Unum Group provides disability insurance, long-term care insurance, life insurance, and employee-paid group benefits and related services.

In addition, the company sports a Zacks Rank #2 (Buy) with an overall VGM Score of an A while residing in the Zacks Finance Sector.

Furthermore, shares are pushing 52-week highs, undoubtedly a positive. Let’s take a closer look at the company in order to see if it’s worth investors’ attention.

Earnings Performance & Growth Estimates

Analysts have raised their earnings outlook across nearly all timeframes over the last 60 days, a bullish signal that’s helped push the company into a Zacks Rank #2 (Buy).

For the upcoming quarter, the $1.28 Zacks Consensus EPS Estimate pencils in a substantial 25% year-over-year uptick in earnings.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

In addition, the $5.48 Zacks Consensus EPS Estimate for the current fiscal year reflects a sizable 26% uptick in earnings year-over-year.

The company has been on a notable earnings streak, chaining together three consecutive bottom-line beats. And just in its latest quarter, UNM exceeded earnings expectations by a sizable 55%.

UNM’s top-line results have also been strong, with the company penciling in six revenue beats over its last seven quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Valuation

Unum Group also sports rock-solid valuation levels, further bolstered by its Style Score of an A for Value. UNM’s forward P/E ratio resides at an enticingly low 5.9X, reflecting a steep 60% discount relative to its Zacks Finance Sector.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Shareholder Friendly

Everybody loves dividends. After all, who doesn’t enjoy getting paid?

Fortunately for investors, UNM’s annual dividend yields a rock-solid 3.7%, and the company has increased its dividend payout four times over the last five years. In addition, the yield is much higher than the Zacks Finance Sector average.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Bottom Line

UNM shares are pushing 52-week highs, undoubtedly a major positive reflecting that buyers have been in total control. In addition, the company sports the Zacks Rank #2 (Buy), making shares appear even more enticing.

The company is projected to register serious bottom-line growth in the current fiscal year, valuation levels are rock-solid, quarterly results have been repeatedly reported above expectations, and UNM enjoys increasingly rewarding its shareholders with consistent dividend payout increases.

For investors seeking exposure to the insurance industry and finance sector, Unum Group UNM shares deserve a top spot on your watchlist.


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Zacks Investment Research