Why Unum (UNM) Outpaced the Stock Market Today
In the latest market close, Unum (UNM) reached $46.67, with a +1.3% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.22% for the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.32%.
Coming into today, shares of the insurance company had gained 2.51% in the past month. In that same time, the Finance sector lost 3.39%, while the S&P 500 gained 1.61%.
Market participants will be closely following the financial results of Unum in its upcoming release. The company plans to announce its earnings on January 30, 2024. The company is expected to report EPS of $1.86, up 30.07% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.13 billion, indicating a 4.28% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Unum. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. As of now, Unum holds a Zacks Rank of #3 (Hold).
With respect to valuation, Unum is currently being traded at a Forward P/E ratio of 5.86. This denotes a discount relative to the industry's average Forward P/E of 12.49.
We can additionally observe that UNM currently boasts a PEG ratio of 0.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Insurance - Accident and Health industry held an average PEG ratio of 1.47.
The Insurance - Accident and Health industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Unum Group (UNM) : Free Stock Analysis Report
