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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.07. This compares to its industry's average Forward P/E of 10.89. Over the past year, UNM's Forward P/E has been as high as 6.55 and as low as 5.33, with a median of 6.01.
We 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 industry currently sports an average PEG of 1.71. Over the past 52 weeks, UNM's PEG has been as high as 0.94 and as low as 0.63, with a median of 0.78.
Another valuation metric that we should highlight is UNM's P/B ratio of 1.02. 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 attractive against its industry's average P/B of 1.77. Within the past 52 weeks, UNM's P/B has been as high as 1.07 and as low as 0.83, with a median of 0.97.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.79. This compares to its industry's average P/S of 1.21.
Finally, our model also underscores that UNM has a P/CF ratio of 7.07. 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 P/CF compares to its industry's average P/CF of 7.81. UNM's P/CF has been as high as 7.26 and as low as 4.49, with a median of 5.66, all within the past year.
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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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.07. This compares to its industry's average Forward P/E of 10.89. Over the past year, UNM's Forward P/E has been as high as 6.55 and as low as 5.33, with a median of 6.01.
We 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 industry currently sports an average PEG of 1.71. Over the past 52 weeks, UNM's PEG has been as high as 0.94 and as low as 0.63, with a median of 0.78.
Another valuation metric that we should highlight is UNM's P/B ratio of 1.02. 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 attractive against its industry's average P/B of 1.77. Within the past 52 weeks, UNM's P/B has been as high as 1.07 and as low as 0.83, with a median of 0.97.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.79. This compares to its industry's average P/S of 1.21.
Finally, our model also underscores that UNM has a P/CF ratio of 7.07. 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 P/CF compares to its industry's average P/CF of 7.81. UNM's P/CF has been as high as 7.26 and as low as 4.49, with a median of 5.66, all within the past year.
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.