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Is Unum Group (UNM) a Great Value Stock Right Now?
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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.
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.
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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.54, while its industry has an average P/E of 11.93. UNM's Forward P/E has been as high as 7.46 and as low as 4.76, with a median of 6.39, all within the past year.
Another valuation metric that we should highlight is UNM's P/B ratio of 0.95. The P/B ratio pits a stock's market value against 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 1.57. Over the past year, UNM's P/B has been as high as 1.06 and as low as 0.44, with a median of 0.67.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.68. This compares to its industry's average P/S of 1.92.
Finally, our model also underscores that UNM has a P/CF ratio of 5.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. UNM's P/CF compares to its industry's average P/CF of 6.41. Over the past 52 weeks, UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.69.
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.
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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.
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.
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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.54, while its industry has an average P/E of 11.93. UNM's Forward P/E has been as high as 7.46 and as low as 4.76, with a median of 6.39, all within the past year.
Another valuation metric that we should highlight is UNM's P/B ratio of 0.95. The P/B ratio pits a stock's market value against 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 1.57. Over the past year, UNM's P/B has been as high as 1.06 and as low as 0.44, with a median of 0.67.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.68. This compares to its industry's average P/S of 1.92.
Finally, our model also underscores that UNM has a P/CF ratio of 5.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. UNM's P/CF compares to its industry's average P/CF of 6.41. Over the past 52 weeks, UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.69.
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.