StockCall Scans Unum Group and AFLAC Inc.: Health Insurance Sector Rebounds
LONDON, February 13, 2013
LONDON, February 13, 2013 /PRNewswire/ --
Health insurance stocks are responding well to the recovering economic
conditions. While the sector's performance is heavily dependent on
macroeconomic and regulatory factors, the companies are also working to
improve their efficiencies and margins. Unum Group (NYSE: UNM) reported strong
Q4 results but still expects its short-term growth to be lower than its
long-term growth targets. AFLAC Inc. (NYSE: AFL), on the other hand, is
expanding its business in overseas market, specifically in Japan. The company
derives over 80 percent of its total revenue from the Japanese insurance
market. The sector looks robust with improving economic conditions. StockCall
has taken an interest in these companies and you can now sign up to download
the free technical research on Unum Group and AFLAC Inc. at
Unum Group Reports Good Q4 Results
Unum Group performed well despite weak economic scenario. The company recently
reported its fourth quarter financial numbers and its net income jumped to
$233.9 million, up from a net loss reported in the corresponding quarter of
last year. Unum Group expects its 2013 after tax operating income to grow in
the range of 0 to 6 percent. The company also reported improvement in its
low-performing divisions. Unum Group's U.S. disability business also showed
better-than-expected growth. Register to download the free technical analysis
on Unum Group at http://www.StockCall.com/UNM021313.pdf
Unum Group stock grew 7.7 percent in the past 52 weeks. However, the company
also provided additional value to its stockholders by buying back its shares.
The insurance company bought $600 million worth of its stock in 2012.
Shareholders also stand to benefit as the company responds to general
improvement in the overall economy.
Unum Group has paid 13 cents per share in quarterly dividend. It is taking a
conservative approach towards growth and is keeping its risk profile low. The
strategy is designed to bring long-term value to its stock. Unum Group stock
is also a good buy at this point as it trades at a discount to its book value,
showing good upside potential. Its P/E ratio is quite conservative at 7.90.
Unum Group offers good growth prospects for long-term investors.
AFLAC Grows its EPS
AFLAC Inc. is an ideal candidate for an income portfolio. While the stock
tumbled more than 75 percent during the recession, it still retained its
dividend payment and its dividend growth rate stands at 30 percent. The
company also has the record of increasing its annual dividend for past 30
years. AFLAC expects to grow its earnings annually at 6.51 percent and plans
to boost its dividend payments accordingly. In short, the company offers high
assurance level for its dividend stability. Sign up today to read the free
research report on AFLAC Inc. at http://www.StockCall.com/AFL021313.pdf
The company recently reported its quarterly results and its EPS stood at
$1.24, up from $1.15 per share it had earned a year earlier. The company is
also driving its international business up. Its venture in the Japanese
insurance market is thriving. However, it also leaves the business vulnerable
to dollar-yen exchange rate risks. The company currently holds a leadership
position in the Japanese cancer and medical insurance market. AFLAC stock
trades at P/E ratio of 8.1, which is considerably lower than the industry
average of 12.60. Despite its recent gains, the stock is still off its
pre-recession highs and thus offers a very good investment opportunity.
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