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.
Are Investors Undervaluing Unum Group (UNM) Right Now?
Read MoreHide Full Article
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
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 has a Forward P/E ratio of 6.19. This compares to its industry's average Forward P/E of 12.95. Over the last 12 months, UNM's Forward P/E has been as high as 6.74 and as low as 5.33, with a median of 6.10.
Investors should also note that UNM holds a PEG ratio of 0.77. 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 1.52. UNM's PEG has been as high as 1.27 and as low as 0.72, with a median of 0.83, all within the past year.
Another valuation metric that we should highlight is UNM's P/B ratio of 0.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.87. Within the past 52 weeks, UNM's P/B has been as high as 1.09 and as low as 0.85, with a median of 0.96.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UNM has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.44.
Finally, we should also recognize that UNM has a P/CF ratio of 7.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. UNM's P/CF compares to its industry's average P/CF of 8.26. Within the past 12 months, UNM's P/CF has been as high as 7.76 and as low as 5.88, with a median of 6.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Unum Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UNM feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Unum Group (UNM) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
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 has a Forward P/E ratio of 6.19. This compares to its industry's average Forward P/E of 12.95. Over the last 12 months, UNM's Forward P/E has been as high as 6.74 and as low as 5.33, with a median of 6.10.
Investors should also note that UNM holds a PEG ratio of 0.77. 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 1.52. UNM's PEG has been as high as 1.27 and as low as 0.72, with a median of 0.83, all within the past year.
Another valuation metric that we should highlight is UNM's P/B ratio of 0.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.87. Within the past 52 weeks, UNM's P/B has been as high as 1.09 and as low as 0.85, with a median of 0.96.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UNM has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.44.
Finally, we should also recognize that UNM has a P/CF ratio of 7.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. UNM's P/CF compares to its industry's average P/CF of 8.26. Within the past 12 months, UNM's P/CF has been as high as 7.76 and as low as 5.88, with a median of 6.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Unum Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UNM feels like a great value stock at the moment.