UNM Outperforms Industry, Trades at a Premium: Should You Buy the Stock?

Unum Group's shares have gained 9.6% YTD, outperforming its industry and the S&P 500. The insurer's steady rise in premiums, favorable benefits experience, and disciplined pricing strategies support its profitability. UNM's shares are trading at a discount compared to the industry, with a forward price-to-book value of 1.25X, lower than the industry average of 1.83X. The Zacks Consensus Estimate for 2025 revenues is pegged at $13.2 billion, with a 2.8% YoY improvement. The expected long-term earnings growth is 7.2%, better than the industry average of 6%.

Unum Group (NYSE:UNM) has seen its shares appreciate by 9.6% year-to-date (YTD), outperforming both its industry peers and the broader S&P 500 index. This robust performance is driven by a combination of factors, including steady increases in premiums, favorable benefits experience, and disciplined pricing strategies. These elements have significantly contributed to the company's profitability.

The insurer's shares are currently trading at a forward price-to-book value ratio of 1.25X, which is lower than the industry average of 1.83X. This discount suggests that the market may be undervaluing the company's intrinsic value, potentially presenting an opportunity for investors.

Analysts have been bullish on Unum Group, with several major firms raising their target prices. For instance, Wells Fargo & Company has increased its target price from $97.00 to $105.00, giving the stock an "overweight" rating [1]. Similarly, Piper Sandler has raised its target price from $88.00 to $92.00, also with an "overweight" rating [1]. These upgrades reflect a consensus view among analysts that Unum Group is well-positioned for growth.

Looking ahead, Unum Group is expected to generate revenues of $13.2 billion in 2025, representing a 2.8% year-over-year (YoY) improvement from the previous year. The company is also anticipated to achieve long-term earnings growth of 7.2%, which is above the industry average of 6% [1]. These projections highlight the company's strong fundamentals and its potential for continued growth.

In addition to the positive earnings outlook, institutional investors have been actively increasing their stakes in Unum Group. Several large investors, including Fifth Third Bancorp and Advisors Capital Management LLC, have grown their holdings in the company during the first quarter [1]. This increased interest from institutional investors underscores the confidence in Unum Group's prospects.

Despite the positive outlook, it is essential for investors to remain vigilant and conduct thorough due diligence. While the company's fundamentals appear strong, market conditions and unforeseen risks can impact stock performance. Investors should consider their risk tolerance and financial goals before making any investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/unum-group-nyseunm-price-target-raised-to-8500-2025-07-14/
[2] https://www.marketbeat.com/instant-alerts/filing-bank-of-new-york-mellon-corp-sells-17900-shares-of-unum-group-nyseunm-2025-07-09/