Unum (UNM) closed at $40.38 in the latest trading session, marking a -1.27% move from the prior day. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the insurance company had gained 4.93% over the past month, outpacing the Finance sector's loss of 5.01% and the S&P 500's loss of 7.59% in that time.
Wall Street will be looking for positivity from Unum as it approaches its next earnings report date. In that report, analysts expect Unum to post earnings of $1.41 per share. This would mark year-over-year growth of 36.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3 billion, up 1.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.11 per share and revenue of $12.07 billion, which would represent changes of +40.46% and +1.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Unum. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Unum is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Unum has a Forward P/E ratio of 6.69 right now. For comparison, its industry has an average Forward P/E of 14.4, which means Unum is trading at a discount to the group.
Also, we should mention that UNM has a PEG ratio of 0.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Insurance - Accident and Health stocks are, on average, holding a PEG ratio of 1.35 based on yesterday's closing prices.
The Insurance - Accident and Health industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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