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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
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 an A grade for Value. The stock is trading with P/E ratio of 6.45 right now. For comparison, its industry sports an average P/E of 11.19. Over the last 12 months, UNM's Forward P/E has been as high as 6.55 and as low as 5.33, with a median of 6.04.
We also note that UNM holds a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UNM's industry has an average PEG of 1.76 right now. UNM's PEG has been as high as 0.89 and as low as 0.63, with a median of 0.78, all within the past year.
We should also highlight that UNM has a P/B ratio of 1.09. The P/B is a method of comparing a stock's market value to 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 1.82. UNM's P/B has been as high as 1.09 and as low as 0.83, with a median of 0.98, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UNM has a P/S ratio of 0.83. 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 7.54. 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 8.07. UNM's P/CF has been as high as 7.54 and as low as 4.49, with a median of 5.77, 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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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
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 an A grade for Value. The stock is trading with P/E ratio of 6.45 right now. For comparison, its industry sports an average P/E of 11.19. Over the last 12 months, UNM's Forward P/E has been as high as 6.55 and as low as 5.33, with a median of 6.04.
We also note that UNM holds a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UNM's industry has an average PEG of 1.76 right now. UNM's PEG has been as high as 0.89 and as low as 0.63, with a median of 0.78, all within the past year.
We should also highlight that UNM has a P/B ratio of 1.09. The P/B is a method of comparing a stock's market value to 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 1.82. UNM's P/B has been as high as 1.09 and as low as 0.83, with a median of 0.98, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UNM has a P/S ratio of 0.83. 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 7.54. 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 8.07. UNM's P/CF has been as high as 7.54 and as low as 4.49, with a median of 5.77, 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.