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Should Value Investors Buy Unum Group (UNM) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Unum Group (UNM - Free Report) . UNM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.54. This compares to its industry's average Forward P/E of 11.87. UNM's Forward P/E has been as high as 7.46 and as low as 4.49, with a median of 6.34, all within the past year.
We should also highlight that UNM has a P/B ratio of 0.95. 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 stock's P/B looks attractive against its industry's average P/B of 1.56. Over the past year, UNM's P/B has been as high as 1.06 and as low as 0.42, with a median of 0.66.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.67. This compares to its industry's average P/S of 1.91.
Finally, investors will want to recognize that UNM has a P/CF ratio of 5.65. 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 P/CF compares to its industry's average P/CF of 7.27. 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 5.69.
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.
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Should Value Investors Buy Unum Group (UNM) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Unum Group (UNM - Free Report) . UNM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.54. This compares to its industry's average Forward P/E of 11.87. UNM's Forward P/E has been as high as 7.46 and as low as 4.49, with a median of 6.34, all within the past year.
We should also highlight that UNM has a P/B ratio of 0.95. 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 stock's P/B looks attractive against its industry's average P/B of 1.56. Over the past year, UNM's P/B has been as high as 1.06 and as low as 0.42, with a median of 0.66.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.67. This compares to its industry's average P/S of 1.91.
Finally, investors will want to recognize that UNM has a P/CF ratio of 5.65. 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 P/CF compares to its industry's average P/CF of 7.27. 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 5.69.
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.