We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Unum Group (UNM) a Great Value Stock Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Unum Group (UNM - Free Report) is a stock many investors are watching right now. UNM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.25 right now. For comparison, its industry sports an average P/E of 9.69. Over the last 12 months, UNM's Forward P/E has been as high as 7.36 and as low as 4.46, with a median of 5.42.
We also note that UNM holds a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UNM's industry currently sports an average PEG of 1.46. Over the last 12 months, UNM's PEG has been as high as 1.82 and as low as 0.49, with a median of 0.66.
We should also highlight that UNM has a P/B ratio of 0.64. The P/B ratio is used to compare a stock's market value with 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 1.03. Within the past 52 weeks, UNM's P/B has been as high as 0.71 and as low as 0.41, with a median of 0.50.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UNM has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.61.
Finally, we should also recognize that UNM has a P/CF ratio of 6.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.13. Over the past 52 weeks, UNM's P/CF has been as high as 7.22 and as low as 4.90, with a median of 6.03.
These are only a few of the key metrics included in Unum Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UNM looks like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Unum Group (UNM) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Unum Group (UNM - Free Report) is a stock many investors are watching right now. UNM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.25 right now. For comparison, its industry sports an average P/E of 9.69. Over the last 12 months, UNM's Forward P/E has been as high as 7.36 and as low as 4.46, with a median of 5.42.
We also note that UNM holds a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UNM's industry currently sports an average PEG of 1.46. Over the last 12 months, UNM's PEG has been as high as 1.82 and as low as 0.49, with a median of 0.66.
We should also highlight that UNM has a P/B ratio of 0.64. The P/B ratio is used to compare a stock's market value with 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 1.03. Within the past 52 weeks, UNM's P/B has been as high as 0.71 and as low as 0.41, with a median of 0.50.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UNM has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.61.
Finally, we should also recognize that UNM has a P/CF ratio of 6.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.13. Over the past 52 weeks, UNM's P/CF has been as high as 7.22 and as low as 4.90, with a median of 6.03.
These are only a few of the key metrics included in Unum Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UNM looks like an impressive value stock at the moment.