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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Unum Group (UNM - Free Report) . UNM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.25, while its industry has an average P/E of 10.66. UNM's Forward P/E has been as high as 7.36 and as low as 4.46, with a median of 5.86, all within the past year.
Investors should also note that UNM holds a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UNM's PEG compares to its industry's average PEG of 1.44. Within the past year, UNM's PEG has been as high as 1.12 and as low as 0.48, with a median of 0.57.
Investors should also recognize that UNM has a P/B ratio of 0.79. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.29. Over the past year, UNM's P/B has been as high as 0.83 and as low as 0.41, with a median of 0.52.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.64. This compares to its industry's average P/S of 1.71.
Finally, we should also recognize that UNM has a P/CF ratio of 5.66. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.46. UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.77, all within the past year.
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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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Unum Group (UNM - Free Report) . UNM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.25, while its industry has an average P/E of 10.66. UNM's Forward P/E has been as high as 7.36 and as low as 4.46, with a median of 5.86, all within the past year.
Investors should also note that UNM holds a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UNM's PEG compares to its industry's average PEG of 1.44. Within the past year, UNM's PEG has been as high as 1.12 and as low as 0.48, with a median of 0.57.
Investors should also recognize that UNM has a P/B ratio of 0.79. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.29. Over the past year, UNM's P/B has been as high as 0.83 and as low as 0.41, with a median of 0.52.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.64. This compares to its industry's average P/S of 1.71.
Finally, we should also recognize that UNM has a P/CF ratio of 5.66. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.46. UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.77, all within the past year.
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.