Aflac Climbs 0.36% Despite 493rd Volume Rank as Morgan Stanley Lifts Target

On August 18, 2025, Aflac (AFL) closed with a 0.36% gain, while its trading volume declined by 33.03% to $0.19 billion, ranking 493rd in the market. The stock’s performance followed a key analyst update from Morgan Stanley, which raised its price target to $113 from $108, maintaining an Equal Weight rating. The adjustment came after the firm revised its outlook for the Life Insurance sector, citing strong Q2 results where nearly half of covered life insurers exceeded expectations. Analyst Bob Huang highlighted selective favorable underwriting and outperforming macro-sensitive segments as key drivers behind the earnings beats.

The firm’s decision reflects confidence in Aflac’s business model, which spans health and life insurance operations in Japan and the U.S. The Japanese segment accounts for 55.5% of net sales, focusing on cancer and general medical indemnity plans, while the U.S. division (38.7% of sales) emphasizes accident/disability and long-term care coverage. Morgan Stanley’s analysis suggests that Aflac’s diversified product offerings and strategic underwriting practices position it to navigate sector-specific challenges effectively.

Backtesting a strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a total profit of $10,720, with steady growth despite market fluctuations. This outcome underscores the potential of volume-driven strategies in capturing short-term momentum, though investors are advised to consider broader fundamentals and analyst insights for long-term positioning.