We expect accident and health insurer
) to beat expectations when it reports second-quarter 2014 results
on Jul 30.
Why a Likely Positive Surprise?
Our proven model shows that Unum Group is likely to beat earnings
because it has the right combination of two key ingredients.
, which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate, is +1.15%. This is a
meaningful and a leading indicator of a likely positive earnings
: Unum Group has a Zacks Rank #3 (Hold). Note that stocks with a
Zacks Rank #1, 2 and 3 have a significantly higher chance of
beating earnings. The Sell-rated stocks (#4 and 5) should never be
considered going into an earnings announcement.
The combination of Unum Group' s Zacks Rank #3 and +1.15% ESP makes
us confident of an earnings beat this release.
What is Driving the Better-than-Expected Earnings?
The second-quarter results are expected to be favorably impacted by
disciplined underwriting, pricing, underwriting and reservation
The investment results are expected to be aided by the company's
initiatives undertaken to raise prices in those product areas which
are most affected by low rates. The company's investment strategy
serves as an important component of the overall business
Continued share repurchase will also boost the bottom line.
The positive trend is backed by the trailing four-quarter average
surprise of 2.43%, much of which was contributed by the 2.7%
surprise in the third quarter of 2013. Better performances in core
business largely drove the upside.
Management also remains focused on moving to a mix of businesses
with higher growth and stable margins resulting in solid
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows these have the right combination of elements to post an
earnings beat this coming quarter:
Arch Capital Group Ltd. (
), Earnings ESP of +5.10% and a Zacks Rank #2 (Buy).
Aflac Inc. (
), Earnings ESP of +0.63% and a Zacks Rank #2.
Protective Life (
), Earnings ESP of +0.83% and a Zacks Rank #3.
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AFLAC INC (AFL): Free Stock Analysis Report
UNUM GROUP (UNM): Free Stock Analysis Report
PROTECTIVE LIFE (PL): Free Stock Analysis
ARCH CAP GP LTD (ACGL): Free Stock Analysis
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