Unum (UNM) Stock Sinks As Market Gains: What You Should Know
Unum (UNM) closed at $49.41 in the latest trading session, marking a -0.06% move from the prior day. This change lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.
Heading into today, shares of the insurance company had 0% over the past month, outpacing the Finance sector's loss of 1.61% and the S&P 500's loss of 2.86% in that time.
Unum will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2023. The company is expected to report EPS of $1.92, up 27.15% from the prior-year quarter. 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, our 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 note any recent changes to analyst estimates for Unum. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. Unum currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Unum has a Forward P/E ratio of 6.39 right now. For comparison, its industry has an average Forward P/E of 12.39, which means Unum is trading at a discount to the group.
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. The Insurance - Accident and Health industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Insurance - Accident and Health industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Unum Group (UNM) : Free Stock Analysis Report
