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Are Investors Undervaluing Unum Group (UNM) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One stock to keep an eye on is Unum Group (UNM - Free Report) . UNM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.82 right now. For comparison, its industry sports an average P/E of 11.14. UNM's Forward P/E has been as high as 7.46 and as low as 5.45, with a median of 6.52, all within the past year.
We also note that UNM holds a PEG ratio of 1. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UNM's PEG compares to its industry's average PEG of 2.05. Within the past year, UNM's PEG has been as high as 1.01 and as low as 0.42, with a median of 0.53.
Another notable valuation metric for UNM is its P/B ratio of 0.96. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.60. Over the past 12 months, UNM's P/B has been as high as 1.06 and as low as 0.47, with a median of 0.80.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UNM has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.92.
Finally, investors should note that UNM has a P/CF ratio of 5.84. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 7.22. Within the past 12 months, UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.67.
Value investors will likely look at more than just these metrics, but the above data helps show that Unum Group is likely undervalued currently. And when considering the strength of its earnings outlook, UNM sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Unum Group (UNM) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One stock to keep an eye on is Unum Group (UNM - Free Report) . UNM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.82 right now. For comparison, its industry sports an average P/E of 11.14. UNM's Forward P/E has been as high as 7.46 and as low as 5.45, with a median of 6.52, all within the past year.
We also note that UNM holds a PEG ratio of 1. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UNM's PEG compares to its industry's average PEG of 2.05. Within the past year, UNM's PEG has been as high as 1.01 and as low as 0.42, with a median of 0.53.
Another notable valuation metric for UNM is its P/B ratio of 0.96. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.60. Over the past 12 months, UNM's P/B has been as high as 1.06 and as low as 0.47, with a median of 0.80.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UNM has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.92.
Finally, investors should note that UNM has a P/CF ratio of 5.84. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 7.22. Within the past 12 months, UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.67.
Value investors will likely look at more than just these metrics, but the above data helps show that Unum Group is likely undervalued currently. And when considering the strength of its earnings outlook, UNM sticks out at as one of the market's strongest value stocks.