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Should Value Investors Buy Unum Group (UNM) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Unum Group (UNM - Free Report) . UNM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.34. This compares to its industry's average Forward P/E of 10.66. 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 6.39.
UNM is also sporting a PEG ratio of 0.76. 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 1.87. Over the last 12 months, UNM's PEG has been as high as 1.03 and as low as 0.42, with a median of 0.61.
Another valuation metric that we should highlight is UNM's P/B ratio of 1.04. The P/B ratio pits a stock's market value against 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 1.83. Over the past year, UNM's P/B has been as high as 1.06 and as low as 0.65, with a median of 0.92.
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 0.8. This compares to its industry's average P/S of 1.26.
Finally, investors should note that UNM has a P/CF ratio of 5.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 7.26. 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 5.62.
These are only a few of the key metrics included in Unum Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UNM looks like an impressive value stock at the moment.
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Should Value Investors Buy Unum Group (UNM) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Unum Group (UNM - Free Report) . UNM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.34. This compares to its industry's average Forward P/E of 10.66. 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 6.39.
UNM is also sporting a PEG ratio of 0.76. 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 1.87. Over the last 12 months, UNM's PEG has been as high as 1.03 and as low as 0.42, with a median of 0.61.
Another valuation metric that we should highlight is UNM's P/B ratio of 1.04. The P/B ratio pits a stock's market value against 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 1.83. Over the past year, UNM's P/B has been as high as 1.06 and as low as 0.65, with a median of 0.92.
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 0.8. This compares to its industry's average P/S of 1.26.
Finally, investors should note that UNM has a P/CF ratio of 5.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 7.26. 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 5.62.
These are only a few of the key metrics included in Unum Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UNM looks like an impressive value stock at the moment.