Stock of the Day

October 23, 2019

Unum Group (UNM)

$92.40
+$0.94 (+1.0%)
Market Cap: $14.48B

About Unum Group

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous products. The company sells its products primarily to employers for the benefit of employees. It sells its products through field sales personnel, independent brokers, consultants, and independent contractor agent sales force and brokers. Unum Group was founded in 1848 and is based in Chattanooga, Tennessee.

Today's Trend

Unum Group (NYSE: UNM) shares are facing modest pressure as Zacks Research lowered its earnings forecasts across several periods, although favorable commentary about Colonial Life provides a counterpoint. The stock remains near its 52-week high, while its long-term earnings outlook is still positive but slightly less optimistic.

  • Colonial Life is reportedly benefiting from sales growth, favorable claims trends, higher investment income and strong profitability. These factors could support Unum’s earnings momentum and improve the risk profile of its core business. Can Unum Group's Colonial Life Sustain Its Earnings Momentum?
  • Recent commentary argues that Colonial Life’s strength may be lifting investor sentiment and that Unum could still appear inexpensive relative to its earnings potential. However, these are valuation and analysis pieces rather than new company guidance. Is Unum Group Still Cheap As Colonial Life Strength Lifts Sentiment?
  • Morgan Stanley assigned Unum Group a Hold rating, suggesting limited near-term conviction despite the company’s recent operating momentum. Unum Group Receives a Hold from Morgan Stanley
  • Other analysis focuses on whether Colonial Life’s technology gains are quietly reducing Unum’s risk profile, which could be strategically favorable but does not represent a new earnings or guidance announcement. Is Unum Group’s Colonial Life Tech Gains Quietly Rebalancing Its Core Risk Profile?
  • Zacks Research reduced its EPS forecasts for Q1 2027 to $2.15 from $2.17, Q2 2027 to $2.30 from $2.32, FY2027 to $9.33 from $9.36, Q1 2028 to $2.46 from $2.48, Q2 2028 to $2.51 from $2.58, and FY2028 to $10.13 from $10.23. The repeated downward revisions may be weighing on sentiment, even though FY2026 consensus remains $8.64 per share.
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