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Should Unum Group (UNM) Stock Be in Your Portfolio Now?
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Unum Group (UNM - Free Report) saw its shares gain 55.88% in the last one year, significantly outperforming the Zacks categorized Accident & Health industry’s growth of 31.57%. We expect the company to retain its momentum on the back of a number of positives. The insurer has also witnessed its full year estimates moving north in the last two months.
Unum Group is currently an industry-leading disability income writer as well as the second-largest writer of voluntary business in the U.S. Despite the volatility in the U.S. economy, the company managed to deliver favorable operating results across the majority of its insurance entities in the past few years. This apart, the company’s conservative pricing and reservation practices have contributed to its profitability over a considerable period of time.
Unum U.S. and Colonial Life, which constitute two of the largest operating segments of Unum Group, have been witnessing continued operating income growth over the last few years. Interestingly, Unum Group estimates operating income per share to grow between 3% and 6% in 2017.
Moreover, Unum Group has been displaying solid capital generation and strong financial flexibility. This in turn has been enabling the company to undertake effective capital deployment activities.
Also, a solid capital position supported the company’s purchase of Starmount Life Insurance Company on Aug 1, 2016. The company expects this buyout to help it capitalize on the growth opportunities in the dental market, which is part of the company’s strategy to focus more on employee benefits business.
Unum Group is set to report fourth-quarter results on Feb 1. However, our proven model cannot conclusively show that the company is poised for an earnings beat this season. Though the company carries a Zacks Rank #2 (Buy), which increases the predictive power of an earnings beat, its Earnings ESP of 0.00% makes surprise prediction difficult. We note that the accident & health insurer delivered positive surprises in all of the last four quarters with an average beat of 4.59%.
Aspen Insurance Holdings deals in insurance and reinsurance businesses worldwide. The company delivered positive surprise in one of the last four quarters, but with an average miss of 15.48%.
Cincinnati Financial engages in the property casualty insurance business in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 11.82%.
Mercury General deals in writing personal automobile insurance in the U.S. The company delivered positive surprises in two of the last four quarters, but with an average miss of 21.04%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Should Unum Group (UNM) Stock Be in Your Portfolio Now?
Unum Group (UNM - Free Report) saw its shares gain 55.88% in the last one year, significantly outperforming the Zacks categorized Accident & Health industry’s growth of 31.57%. We expect the company to retain its momentum on the back of a number of positives. The insurer has also witnessed its full year estimates moving north in the last two months.
Unum Group is currently an industry-leading disability income writer as well as the second-largest writer of voluntary business in the U.S. Despite the volatility in the U.S. economy, the company managed to deliver favorable operating results across the majority of its insurance entities in the past few years. This apart, the company’s conservative pricing and reservation practices have contributed to its profitability over a considerable period of time.
Unum U.S. and Colonial Life, which constitute two of the largest operating segments of Unum Group, have been witnessing continued operating income growth over the last few years. Interestingly, Unum Group estimates operating income per share to grow between 3% and 6% in 2017.
Moreover, Unum Group has been displaying solid capital generation and strong financial flexibility. This in turn has been enabling the company to undertake effective capital deployment activities.
Also, a solid capital position supported the company’s purchase of Starmount Life Insurance Company on Aug 1, 2016. The company expects this buyout to help it capitalize on the growth opportunities in the dental market, which is part of the company’s strategy to focus more on employee benefits business.
Unum Group is set to report fourth-quarter results on Feb 1. However, our proven model cannot conclusively show that the company is poised for an earnings beat this season. Though the company carries a Zacks Rank #2 (Buy), which increases the predictive power of an earnings beat, its Earnings ESP of 0.00% makes surprise prediction difficult. We note that the accident & health insurer delivered positive surprises in all of the last four quarters with an average beat of 4.59%.
Other Stocks to Consider
Investors interested in other stocks from the insurance industry might consider Aspen Insurance Holdings Limited , Cincinnati Financial Corporation (CINF - Free Report) and Mercury General Corporation (MCY - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Aspen Insurance Holdings deals in insurance and reinsurance businesses worldwide. The company delivered positive surprise in one of the last four quarters, but with an average miss of 15.48%.
Cincinnati Financial engages in the property casualty insurance business in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 11.82%.
Mercury General deals in writing personal automobile insurance in the U.S. The company delivered positive surprises in two of the last four quarters, but with an average miss of 21.04%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>