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Are Investors Undervaluing Unum Group (UNM) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
Unum Group (UNM - Free Report) is a stock many investors are watching right now. UNM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.86. This compares to its industry's average Forward P/E of 10.37. UNM's Forward P/E has been as high as 7.02 and as low as 5.33, with a median of 6.08, all within the past year.
Investors should also note that UNM holds a PEG ratio of 0.73. 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 1.61. Within the past year, UNM's PEG has been as high as 1.03 and as low as 0.63, with a median of 0.81.
We should also highlight that UNM has a P/B ratio of 0.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.66. UNM's P/B has been as high as 1.07 and as low as 0.79, with a median of 0.96, 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. 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 0.75. This compares to its industry's average P/S of 1.2.
Finally, investors will want to recognize that UNM has a P/CF ratio of 6.40. 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. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 7.37. Over the past 52 weeks, UNM's P/CF has been as high as 7.31 and as low as 4.79, with a median of 5.97.
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?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
Unum Group (UNM - Free Report) is a stock many investors are watching right now. UNM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.86. This compares to its industry's average Forward P/E of 10.37. UNM's Forward P/E has been as high as 7.02 and as low as 5.33, with a median of 6.08, all within the past year.
Investors should also note that UNM holds a PEG ratio of 0.73. 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 1.61. Within the past year, UNM's PEG has been as high as 1.03 and as low as 0.63, with a median of 0.81.
We should also highlight that UNM has a P/B ratio of 0.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.66. UNM's P/B has been as high as 1.07 and as low as 0.79, with a median of 0.96, 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. 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 0.75. This compares to its industry's average P/S of 1.2.
Finally, investors will want to recognize that UNM has a P/CF ratio of 6.40. 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. UNM's current P/CF looks attractive when compared to its industry's average P/CF of 7.37. Over the past 52 weeks, UNM's P/CF has been as high as 7.31 and as low as 4.79, with a median of 5.97.
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.