Unum Group ( UNM Quick Quote UNM - Free Report) is well-poised for growth on strong segmental performance, effective capital deployment and solid liquidity position. Growth Projections
The Zacks Consensus Estimate for 2022 earnings per share is pegged at $5.38, indicating year-over-year increase of nearly 12.6%. The expected long-term earnings growth is pegged at 3.3%.
The Zacks Consensus Estimate for 2021 and 2022 has moved 0.4% and 0.2% north in the past seven days, reflecting analyst optimism.
The company is well poised for progress, as is evident from its favorable
VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors. Zacks Rank & Price Performance
Unum Group currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 74.8%, outperforming the
industry’s increase of 40%. Business Tailwinds
Unum Group’s performance has been improving over the past several years, attributable to solid performance across its major segments, Unum U.S. and Colonial Life. Unum U.S. accounts for the lion’s share of the premium income of the company.
Banking on disciplined sales trends, strong persistency in group lines and growth of new product lines like dental and vision, Unum U.S. segment is well poised for growth. The dental and vision business continue to gain from declining benefit ratio, which is driven by lower utilization. Stable persistency, growth in premium income and favorable benefits experience are likely to drive the Colonial Life segment of the company. Unum Group boasts strong financial position with healthy capital levels above its targets and holding company cash almost four times its target. In 2020, risk-based capital ratio for the traditional U.S. insurance companies was at approximately 365%. and cash was at $1.5 billion. Both were above their targeted levels. Further, the leverage ratio declined to 26.2%. It anticipates year end 2021 level of holding company cash and risk-based capital to be in line with the year-end 2020, which will provide a strong stable capital base. Notably, Unum Group’s dividend payments have witnessed a CAGR of 10.1% in the past seven years (2014-2021) and currently yield 4.2%, which is better than the industry average of 2.6%. Thus, making the stock an attractive pick for yield- seeking investors. Stocks to Consider
Some better-ranked stocks in the insurance space are
Employers Holdings Inc. ( EIG Quick Quote EIG - Free Report) , Alleghany ( Y Quick Quote Y - Free Report) and James River Group Holdings, Ltd. ( JRVR Quick Quote JRVR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Employers Holdings surpassed estimates in three of the last four quarters, with the average surprise being 98.07%. Alleghany’s bottom line surpassed estimates in two of the last four quarters and missed in the other two, the average beat being 34.08%. James River Group surpassed estimates in three of the last four quarters, with the average surprise being 11.63%. Zacks Names “Single Best Pick to Double”
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >>