Unum (UNM) closed the most recent trading day at $49.97, moving +1.71% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.64%. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Prior to today's trading, shares of the insurance company had gained 1.4% over the past month. This has lagged the Finance sector's gain of 1.93% and outpaced the S&P 500's gain of 0.89% in that time.
Wall Street will be looking for positivity from Unum as it approaches its next earnings report date. This is expected to be October 31, 2023. The company is expected to report EPS of $1.92, up 27.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.1 billion, up 4.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.73 per share and revenue of $12.36 billion. These totals would mark changes of +24.48% and +2.94%, respectively, from last year.
Any recent changes to analyst estimates for Unum should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Unum is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Unum is holding a Forward P/E ratio of 6.35. Its industry sports an average Forward P/E of 12.51, so we one might conclude that Unum is trading at a discount comparatively.
It is also worth noting that UNM currently has a PEG ratio of 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UNM's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Insurance - Accident and Health industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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