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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now 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 has a Forward P/E ratio of 6.36. This compares to its industry's average Forward P/E of 10.09. UNM's Forward P/E has been as high as 7.36 and as low as 4.48, with a median of 5.97, all within the past year.
We should also highlight that UNM has a P/B ratio of 0.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. UNM's current P/B looks attractive when compared to its industry's average P/B of 1.22. UNM's P/B has been as high as 0.85 and as low as 0.41, with a median of 0.57, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UNM has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.56.
Finally, investors should note that UNM has a P/CF ratio of 5.81. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.14. UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.75, 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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Is Unum Group (UNM) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now 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 has a Forward P/E ratio of 6.36. This compares to its industry's average Forward P/E of 10.09. UNM's Forward P/E has been as high as 7.36 and as low as 4.48, with a median of 5.97, all within the past year.
We should also highlight that UNM has a P/B ratio of 0.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. UNM's current P/B looks attractive when compared to its industry's average P/B of 1.22. UNM's P/B has been as high as 0.85 and as low as 0.41, with a median of 0.57, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UNM has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.56.
Finally, investors should note that UNM has a P/CF ratio of 5.81. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.14. UNM's P/CF has been as high as 6.63 and as low as 4.67, with a median of 5.75, 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.