Unum (UNM) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest trading session, Unum (UNM) closed at $49.84, marking a +0.54% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.39%.
The insurance company's stock has climbed by 2.97% in the past month, exceeding the Finance sector's loss of 3.32% and the S&P 500's loss of 3.39%.
The investment community will be closely monitoring the performance of Unum in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2023. The company's earnings per share (EPS) are projected to be $1.92, reflecting a 27.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.1 billion, up 4.36% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.73 per share and revenue of $12.36 billion, which would represent changes of +24.48% and +2.94%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Unum. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Unum is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, Unum is presently trading at a Forward P/E ratio of 6.41. This represents a discount compared to its industry's average Forward P/E of 12.34.
Investors should also note that UNM has a PEG ratio of 0.87 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Accident and Health industry held an average PEG ratio of 1.61.
The Insurance - Accident and Health industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 2% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UNM in the coming trading sessions, be sure to utilize Zacks.com.
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Unum Group (UNM) : Free Stock Analysis Report
