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Here's Why You Should Retain Unum Group (UNM) Stock Now?
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Unum Group (UNM - Free Report) has prosperously met the ever-changing demands and expectations of clients, building a solid service and product portfolio over the years. The company’s target remains intact to maintain this goodwill and push the envelope further to enhance results.
Unum Group is currently an industry-leading disability income writer as well as the second-largest writer of voluntary business in the United States. Despite the country’s challenging economic situation, the company managed to deliver favorable operating results across majority of its insurance entities in the past few years. Therefore, it expects to continue with such a sustained performance in the near term as well.
Also, the company’s operating earnings have been displaying a substantial improvement in the last few years and the first half of 2017 was no exception. Unum Group also anticipates 2017 operating income per share to rise in the 5-8% band over the range recorded in 2016. This apart, the company’s conservative pricing and reservation practices have contributed to profitability in the past few years.
Further, Unum U.S. and Colonial Life, two of the largest operating segments of Unum Group, have been experiencing the operating income growth over the past few years. This has been primarily supported by improving premium income and favorable risk results. Hence, Unum Group awaits a better performance from these segments in the shortterm to add to the company’s bottom line.
Interestingly, the company projects sales increaseat Colonial Life to continue in 2017 and beyond. Also, management remains committed toward shifting to a mix of businesses with potential to result in higher growth and stable margins.
The Zacks Rank #3 (Hold) Accident and Health insurer has been displaying solid capital generation and a strong financial flexibility, enabling the company to undertake effective capital deployment activities. In fact, the company has been consistently boosting shareholders’ value through dividend hikes and share buybacks. It makes a continuous effort to reduce share count, thereby expecting to bolster earnings going forward.
Shares of Unum Group have surged 45.5% in a year’s time, significantly outperforming the industry’s 22.2% rally. We expect both bottom-line and top-line growth, solid performance at Unum U.S. and Colonial Life segments, plus a robust capital position to drive the stock higher in the immediateterm as well.
However, the company has been displaying weak performances at its Closed Block and Corporate segments over a considerable period of time and it does not hope to see any turnaround in the short term. Additionally, Unum Group has been incurring higher expenses in the past few years, hampering the company’s overall results in turn.
Stocks to Consider
Some better-ranked stocks from the insurance industry are First American Financial Corporation (FAF - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , each carrying a Zacks Rank #2 (Buy).
CNO Financial develops, markets and administers health insurance, annuity, individual life insurance and other insurance products for senior and middle-income markets in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.69%.
Cincinnati Financial deals in property and casualty insurance business in the United States. The company delivered positive surprises in all the last four quarters with an average beat of 14.97%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Here's Why You Should Retain Unum Group (UNM) Stock Now?
Unum Group (UNM - Free Report) has prosperously met the ever-changing demands and expectations of clients, building a solid service and product portfolio over the years. The company’s target remains intact to maintain this goodwill and push the envelope further to enhance results.
Unum Group is currently an industry-leading disability income writer as well as the second-largest writer of voluntary business in the United States. Despite the country’s challenging economic situation, the company managed to deliver favorable operating results across majority of its insurance entities in the past few years. Therefore, it expects to continue with such a sustained performance in the near term as well.
Also, the company’s operating earnings have been displaying a substantial improvement in the last few years and the first half of 2017 was no exception. Unum Group also anticipates 2017 operating income per share to rise in the 5-8% band over the range recorded in 2016. This apart, the company’s conservative pricing and reservation practices have contributed to profitability in the past few years.
Further, Unum U.S. and Colonial Life, two of the largest operating segments of Unum Group, have been experiencing the operating income growth over the past few years. This has been primarily supported by improving premium income and favorable risk results. Hence, Unum Group awaits a better performance from these segments in the shortterm to add to the company’s bottom line.
Interestingly, the company projects sales increaseat Colonial Life to continue in 2017 and beyond. Also, management remains committed toward shifting to a mix of businesses with potential to result in higher growth and stable margins.
The Zacks Rank #3 (Hold) Accident and Health insurer has been displaying solid capital generation and a strong financial flexibility, enabling the company to undertake effective capital deployment activities. In fact, the company has been consistently boosting shareholders’ value through dividend hikes and share buybacks. It makes a continuous effort to reduce share count, thereby expecting to bolster earnings going forward.
Shares of Unum Group have surged 45.5% in a year’s time, significantly outperforming the industry’s 22.2% rally. We expect both bottom-line and top-line growth, solid performance at Unum U.S. and Colonial Life segments, plus a robust capital position to drive the stock higher in the immediateterm as well.
However, the company has been displaying weak performances at its Closed Block and Corporate segments over a considerable period of time and it does not hope to see any turnaround in the short term. Additionally, Unum Group has been incurring higher expenses in the past few years, hampering the company’s overall results in turn.
Stocks to Consider
Some better-ranked stocks from the insurance industry are First American Financial Corporation (FAF - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , each carrying a Zacks Rank #2 (Buy).
First American Corporation provides financial services. The company delivered positive surprises in all the last four quarters with an average beat of 12.64%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNO Financial develops, markets and administers health insurance, annuity, individual life insurance and other insurance products for senior and middle-income markets in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.69%.
Cincinnati Financial deals in property and casualty insurance business in the United States. The company delivered positive surprises in all the last four quarters with an average beat of 14.97%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>