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Why You Should Hold Unum Group (UNM) Stock in Your Portfolio
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Unum Group (UNM - Free Report) is well-poised for growth on strong segmental performance, improved operational efficiency and robust liquidity position.
The Zacks Consensus Estimate for 2020 and 2021 earnings indicates 0.6% and 3.8% growth, respectively, from the year-ago reported figure. The expected long-term earnings growth rate is 9%, higher than the industry’s average of 7%.
The company’s VGM Score of B also bodes well. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors.
This company has a decent history of delivering positive surprise with four-quarter average beat being 0.19%.
Unum Group has been consistently growing its operating income over the past few years due to strong performance in two of its largest operating segments — Unum U.S. and Colonial Life. This Zacks Rank #3 (Hold) leading disability income writer and the second-largest writer of voluntary business in the United States should continue to benefit from its leadership in employee benefits, disciplined sales trends, strong persistency and favorable benefits experience.
Though the company expects lower GDP, increase in unemployment, lowered inter rate environment to exert pressure in the near term, it believes it can navigate through the tough times on the strength of its core business, prudent investment management and solid capital position. Management remains focused on moving to a mix of businesses with higher growth and stable margins.
Sustained strong operational performance has been driving solid level of statutory earnings and capital, cushioning financial flexibility.
Given a solid capital position, the company engages in effective capital deployment. Besides share repurchases, the company also consistently increases dividends. It has increased dividend for 11 straight years. Dividend yield of the company is 8.4%, higher than the industry average of 3.8%, making it an attractive investment option for yield-seeking investors.
Shares of Unum Group have lost 50.4% year to date compared with the industry's decrease of 35%.
Brighthouse Financial provides annuity and life insurance products in the United States. The company delivered a positive earnings surprise of 45.22% in the last reported quarter.
American Equity Investment provides life insurance products and services in the United States. The company delivered 32.65% positive earnings surprise in the last reported quarter. The company has a Zacks Rank #2.
Kemper provides property and casualty, and life and health insurance in the United States. The company delivered a positive surprise of 16.83% in the last reported quarter.
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Why You Should Hold Unum Group (UNM) Stock in Your Portfolio
Unum Group (UNM - Free Report) is well-poised for growth on strong segmental performance, improved operational efficiency and robust liquidity position.
The Zacks Consensus Estimate for 2020 and 2021 earnings indicates 0.6% and 3.8% growth, respectively, from the year-ago reported figure. The expected long-term earnings growth rate is 9%, higher than the industry’s average of 7%.
The company’s VGM Score of B also bodes well. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors.
This company has a decent history of delivering positive surprise with four-quarter average beat being 0.19%.
Unum Group has been consistently growing its operating income over the past few years due to strong performance in two of its largest operating segments — Unum U.S. and Colonial Life. This Zacks Rank #3 (Hold) leading disability income writer and the second-largest writer of voluntary business in the United States should continue to benefit from its leadership in employee benefits, disciplined sales trends, strong persistency and favorable benefits experience.
Though the company expects lower GDP, increase in unemployment, lowered inter rate environment to exert pressure in the near term, it believes it can navigate through the tough times on the strength of its core business, prudent investment management and solid capital position. Management remains focused on moving to a mix of businesses with higher growth and stable margins.
Sustained strong operational performance has been driving solid level of statutory earnings and capital, cushioning financial flexibility.
Given a solid capital position, the company engages in effective capital deployment. Besides share repurchases, the company also consistently increases dividends. It has increased dividend for 11 straight years. Dividend yield of the company is 8.4%, higher than the industry average of 3.8%, making it an attractive investment option for yield-seeking investors.
Shares of Unum Group have lost 50.4% year to date compared with the industry's decrease of 35%.
Stocks to Consider
Some better-ranked stocks from the insurance space are Brighthouse Financial (BHF - Free Report) , American Equity Investment Life Holding Company (AEL - Free Report) and Kemper Corporation (KMPR - Free Report) , each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brighthouse Financial provides annuity and life insurance products in the United States. The company delivered a positive earnings surprise of 45.22% in the last reported quarter.
American Equity Investment provides life insurance products and services in the United States. The company delivered 32.65% positive earnings surprise in the last reported quarter. The company has a Zacks Rank #2.
Kemper provides property and casualty, and life and health insurance in the United States. The company delivered a positive surprise of 16.83% in the last reported quarter.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>