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Are Investors Undervaluing Unum Group (UNM) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
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 holds a P/E ratio of 5.96, while its industry has an average P/E of 10.22. Over the past year, UNM's Forward P/E has been as high as 7.46 and as low as 5.47, with a median of 6.37.
We also note that UNM holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UNM's PEG compares to its industry's average PEG of 1.82. Within the past year, UNM's PEG has been as high as 1.03 and as low as 0.42, with a median of 0.54.
Investors should also recognize that UNM has a P/B ratio of 0.97. 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 1.71. UNM's P/B has been as high as 1.06 and as low as 0.62, with a median of 0.89, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UNM has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.24.
Finally, investors should note that UNM has a P/CF ratio of 5.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 6.94. Over the past 52 weeks, UNM's P/CF has been as high as 6.40 and as low as 4.71, with a median of 5.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Unum Group is likely undervalued currently. And when considering the strength of its earnings outlook, UNM sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Unum Group (UNM) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
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 holds a P/E ratio of 5.96, while its industry has an average P/E of 10.22. Over the past year, UNM's Forward P/E has been as high as 7.46 and as low as 5.47, with a median of 6.37.
We also note that UNM holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UNM's PEG compares to its industry's average PEG of 1.82. Within the past year, UNM's PEG has been as high as 1.03 and as low as 0.42, with a median of 0.54.
Investors should also recognize that UNM has a P/B ratio of 0.97. 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 1.71. UNM's P/B has been as high as 1.06 and as low as 0.62, with a median of 0.89, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UNM has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.24.
Finally, investors should note that UNM has a P/CF ratio of 5.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 6.94. Over the past 52 weeks, UNM's P/CF has been as high as 6.40 and as low as 4.71, with a median of 5.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Unum Group is likely undervalued currently. And when considering the strength of its earnings outlook, UNM sticks out at as one of the market's strongest value stocks.