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Aflac Hits 52-Week High on Rating Action, Strong Performance
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On Jun 22, Aflac Inc. (AFL - Free Report) touched a 52-week high of $71.06. We believe this rally in the stock was prompted by the rating affirmation, continuing favorable results and good performance by its different segments. The company posted a positive earnings surprise in three out of the last four reported quarters.
The stock might have received a boost from the favorable rating action by the rating agency A.M.Best, which affirmed the investment grade issuer financial strength ratings and issuer credit ratings of the company’s different subsidiaries.
Investors have gained confidence in Aflac – long bothered by low interest rates – after the rating agency acknowledged its strong risk-adjusted capitalization and excellent financial flexibility, its consistently favorable operating earnings and a well-managed investment portfolio.
Investors seem to be impressed with Aflac’s leading position as a provider of innovative and value-added supplemental worksite benefits. About 75% of the company's profits come from Japan, where it is one of the largest insurers. The company expects growth rates of 4–6% in Japan and 3–5% in the United States.
Investors also remain impressed with the company’s ability to maintain strong capital levels with a debt-to-capital ratio of approximately 22% as of Mar 31, 2016, and interest coverage in excess of 14 times. Consistent capital generation has also enabled it to buy back shares and institute an increase in dividend at regular intervals that has boosted its shareholders' wealth and their confidence in the company.
In the last reported quarter, the company’s operating earnings per share of $1.73 beat the Zacks Consensus Estimate by about 7% and improved 12.3% year over year.
Aflac presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the insurance space are Amerisafe, Inc. (AMSF - Free Report) , Torchmark Corp. and Universal American Corp . While Amerisafe sports a Zacks Rank # 1 (Strong Buy), the other two stocks carry a Zacks Rank # 2 (Buy).
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Aflac Hits 52-Week High on Rating Action, Strong Performance
On Jun 22, Aflac Inc. (AFL - Free Report) touched a 52-week high of $71.06. We believe this rally in the stock was prompted by the rating affirmation, continuing favorable results and good performance by its different segments. The company posted a positive earnings surprise in three out of the last four reported quarters.
The stock might have received a boost from the favorable rating action by the rating agency A.M.Best, which affirmed the investment grade issuer financial strength ratings and issuer credit ratings of the company’s different subsidiaries.
Investors have gained confidence in Aflac – long bothered by low interest rates – after the rating agency acknowledged its strong risk-adjusted capitalization and excellent financial flexibility, its consistently favorable operating earnings and a well-managed investment portfolio.
AFLAC INC Price and Consensus
AFLAC INC Price and Consensus | AFLAC INC Quote
Investors seem to be impressed with Aflac’s leading position as a provider of innovative and value-added supplemental worksite benefits. About 75% of the company's profits come from Japan, where it is one of the largest insurers. The company expects growth rates of 4–6% in Japan and 3–5% in the United States.
Investors also remain impressed with the company’s ability to maintain strong capital levels with a debt-to-capital ratio of approximately 22% as of Mar 31, 2016, and interest coverage in excess of 14 times. Consistent capital generation has also enabled it to buy back shares and institute an increase in dividend at regular intervals that has boosted its shareholders' wealth and their confidence in the company.
In the last reported quarter, the company’s operating earnings per share of $1.73 beat the Zacks Consensus Estimate by about 7% and improved 12.3% year over year.
Aflac presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the insurance space are Amerisafe, Inc. (AMSF - Free Report) , Torchmark Corp. and Universal American Corp . While Amerisafe sports a Zacks Rank # 1 (Strong Buy), the other two stocks carry a Zacks Rank # 2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>