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Unum (UNM) Gains But Lags Market: What You Should Know

·3 min read

Unum (UNM) closed at $38.04 in the latest trading session, marking a +1.12% move from the prior day. This move lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.

Coming into today, shares of the insurance company had gained 2.26% in the past month. In that same time, the Finance sector lost 4%, while the S&P 500 lost 5.51%.

Investors will be hoping for strength from Unum as it approaches its next earnings release. The company is expected to report EPS of $1.39, up 34.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3 billion, up 1.03% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.03 per share and revenue of $12.07 billion. These totals would mark changes of +38.62% and +1.14%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Unum. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. Unum is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Unum is currently trading at a Forward P/E ratio of 6.24. This represents a discount compared to its industry's average Forward P/E of 14.44.

Also, we should mention that UNM has a PEG ratio of 0.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Accident and Health was holding an average PEG ratio of 1.33 at yesterday's closing price.

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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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