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Is Unum (UNM) a Great Value Stock Right Now?

Zacks Equity Research
Vanda (VNDA) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Unum (UNM). UNM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.72 right now. For comparison, its industry sports an average P/E of 9.92. Over the past 52 weeks, UNM's Forward P/E has been as high as 13.19 and as low as 6.60, with a median of 8.99.

UNM is also sporting a PEG ratio of 0.75. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UNM's PEG compares to its industry's average PEG of 1.16. Over the past 52 weeks, UNM's PEG has been as high as 1.88 and as low as 0.73, with a median of 1.29.

Another notable valuation metric for UNM is its P/B ratio of 0.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. UNM's current P/B looks attractive when compared to its industry's average P/B of 1.31. UNM's P/B has been as high as 1.37 and as low as 0.81, with a median of 1.11, over the past year.

These are just a handful of the figures considered in Unum's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UNM is an impressive value stock right now.


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