Unum (UNM) Stock Sinks As Market Gains: Here's Why
In the latest market close, Unum (UNM) reached $48.35, with a -0.37% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.93%.
The the stock of insurance company has fallen by 3.37% in the past month, leading the Finance sector's loss of 5.07% and undershooting the S&P 500's loss of 2.29%.
Analysts and investors alike will be keeping a close eye on the performance of Unum in its upcoming earnings disclosure. The company's earnings report is set to go public on October 31, 2023. The company is predicted to post an EPS of $1.92, indicating a 27.15% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.1 billion, indicating a 4.51% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $7.74 per share and a revenue of $12.37 billion, demonstrating changes of +24.64% and +3.02%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Unum. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Unum currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Unum is currently trading at a Forward P/E ratio of 6.27. This indicates a discount in contrast to its industry's Forward P/E of 12.04.
It is also worth noting that UNM currently has a PEG ratio of 0.85. 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. As of the close of trade yesterday, the Insurance - Accident and Health industry held an average PEG ratio of 1.59.
The Insurance - Accident and Health industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 22, finds itself in the top 9% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Unum Group (UNM) : Free Stock Analysis Report
