We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UNM Stock Gains 68.9% YTD: What Should Be Investors' Approach Now?
Read MoreHide Full Article
Shares of Unum Group (UNM - Free Report) have gained 68.9% year to date, outperforming the industry's rise of 42.6%. The Finance sector and the Zacks S&P 500 index have returned 24.6% and 26.7% in the said time frame, respectively. With a market capitalization of $13.94 billion, the average volume of shares traded in the last three months was 1.3 million. Currently priced at $76.35, the stock is slightly below its 52-week high of $77.63.
UNM Outperforms Industry, Sector, S&P
Image Source: Zacks Investment Research
The rally was driven by favorable growth estimates, strong persistency in group lines and the growth of new product lines, improved premium income, prudent capital deployment and a solid capital position.
The expected long-term earnings growth rate is 9%, which is higher than the industry average of 3.8%. This Zacks Rank #3 (Hold) insurer has a solid track record of beating earnings estimates in three of the past four quarters while missing in one, with an average surprise of 3.17%.
UNM’s Growth Projection Encourages
The Zacks Consensus Estimate for Unum Group’s 2024 earnings per share indicates a year-over-year increase of 11.3%. The consensus estimate for revenues is pegged at $12.95 billion, implying a year-over-year improvement of 4.2%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 5.5% and 3.9%, respectively, from the corresponding 2024 estimates.
Optimistic Analyst Sentiment on UNM
Three of the 13 analysts covering the stock have raised estimates for 2024, and four analysts have raised the same for 2025 over the past 30 days. Thus, the Zacks Consensus Estimate for 2024 and 2025 moved 0.1% and 0.7% north, respectively, in the last 30 days.
UNM Trading Above 50-Day and 200-Day Moving Average
This multi-line insurer is trading above its 50-day and 200-day simple moving average (SMA) of $65.47 and $55.64, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Will the Bull Run Continue?
Premiums, the primary component of UNM’s top line, continue to gain from its healthy in-force block growth and higher sales. Unum Group expects sales growth in the range of 7-10% and premium growth in the band of 5-7% in 2024. For the long term, it expects sales growth in the range of 8-12% and premium growth in the band of 4-7%.
UNM is poised to grow on the operational excellence of Unum U.S. and Colonial Life. Encouraging sales trends, strong persistency in group lines and growth of new product lines like dental and vision, coupled with favorable risk results, should benefit Unum U.S. and Colonial Life, the two largest operating segments.
Management estimates sales growth of 5-10% and premium growth of 5-7% in 2024 for Unum U.S. It expects sales growth in the range of 8-12% and premium growth in the band of 2-4% for Colonial Life in 2024.
Unum Group enjoys a solid capital position and substantial statutory earnings and capital, leading to financial flexibility.
UNM’s Impressive Dividend History
Unum Group has consistently enhanced shareholders’ value through dividend hikes. The board has increased the shareholder dividend by 15%, effective in the third quarter of 2024, putting the dividend payout ratio right around 20%. It also marked the 15th dividend hike in the last 14 years. The dividend yield of the company was 2.4%, higher than the industry average of 1.9%, making it an attractive pick for yield-seeking investors.
The Zacks Consensus Estimate for EverQuote’s 2024 and 2025 earnings implies year-over-year growth of 147.4% and 10.7%, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 149.58%. Year to date, shares of EVER have rallied 58.8%.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies year-over-year growth of 20.7% and 0.6%. It beat earnings estimates in three of the past four quarters while missing in one, with an average surprise of 24.51%. Year to date, shares of CNO have gained 41.2%.
The Zacks Consensus Estimate for Radian’s 2024 and 2025 revenues implies year-over-year growth of 6.4% and 4.8%, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 17.65%. Year to date, shares of RDN have gained 25.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
UNM Stock Gains 68.9% YTD: What Should Be Investors' Approach Now?
Shares of Unum Group (UNM - Free Report) have gained 68.9% year to date, outperforming the industry's rise of 42.6%. The Finance sector and the Zacks S&P 500 index have returned 24.6% and 26.7% in the said time frame, respectively. With a market capitalization of $13.94 billion, the average volume of shares traded in the last three months was 1.3 million. Currently priced at $76.35, the stock is slightly below its 52-week high of $77.63.
UNM Outperforms Industry, Sector, S&P
Image Source: Zacks Investment Research
The rally was driven by favorable growth estimates, strong persistency in group lines and the growth of new product lines, improved premium income, prudent capital deployment and a solid capital position.
The expected long-term earnings growth rate is 9%, which is higher than the industry average of 3.8%. This Zacks Rank #3 (Hold) insurer has a solid track record of beating earnings estimates in three of the past four quarters while missing in one, with an average surprise of 3.17%.
UNM’s Growth Projection Encourages
The Zacks Consensus Estimate for Unum Group’s 2024 earnings per share indicates a year-over-year increase of 11.3%. The consensus estimate for revenues is pegged at $12.95 billion, implying a year-over-year improvement of 4.2%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 5.5% and 3.9%, respectively, from the corresponding 2024 estimates.
Optimistic Analyst Sentiment on UNM
Three of the 13 analysts covering the stock have raised estimates for 2024, and four analysts have raised the same for 2025 over the past 30 days. Thus, the Zacks Consensus Estimate for 2024 and 2025 moved 0.1% and 0.7% north, respectively, in the last 30 days.
UNM Trading Above 50-Day and 200-Day Moving Average
This multi-line insurer is trading above its 50-day and 200-day simple moving average (SMA) of $65.47 and $55.64, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Will the Bull Run Continue?
Premiums, the primary component of UNM’s top line, continue to gain from its healthy in-force block growth and higher sales. Unum Group expects sales growth in the range of 7-10% and premium growth in the band of 5-7% in 2024. For the long term, it expects sales growth in the range of 8-12% and premium growth in the band of 4-7%.
UNM is poised to grow on the operational excellence of Unum U.S. and Colonial Life. Encouraging sales trends, strong persistency in group lines and growth of new product lines like dental and vision, coupled with favorable risk results, should benefit Unum U.S. and Colonial Life, the two largest operating segments.
Management estimates sales growth of 5-10% and premium growth of 5-7% in 2024 for Unum U.S. It expects sales growth in the range of 8-12% and premium growth in the band of 2-4% for Colonial Life in 2024.
Unum Group enjoys a solid capital position and substantial statutory earnings and capital, leading to financial flexibility.
UNM’s Impressive Dividend History
Unum Group has consistently enhanced shareholders’ value through dividend hikes. The board has increased the shareholder dividend by 15%, effective in the third quarter of 2024, putting the dividend payout ratio right around 20%. It also marked the 15th dividend hike in the last 14 years. The dividend yield of the company was 2.4%, higher than the industry average of 1.9%, making it an attractive pick for yield-seeking investors.
Key Picks
Investors interested in the insurance industry may look at some better-ranked players like EverQuote, Inc. (EVER - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Radian Group Inc. (RDN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EverQuote’s 2024 and 2025 earnings implies year-over-year growth of 147.4% and 10.7%, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 149.58%. Year to date, shares of EVER have rallied 58.8%.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies year-over-year growth of 20.7% and 0.6%. It beat earnings estimates in three of the past four quarters while missing in one, with an average surprise of 24.51%. Year to date, shares of CNO have gained 41.2%.
The Zacks Consensus Estimate for Radian’s 2024 and 2025 revenues implies year-over-year growth of 6.4% and 4.8%, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 17.65%. Year to date, shares of RDN have gained 25.2%.