We expect accident and health insurer
) to beat estimates when it reports first-quarter 2014 results on
Why a Likely Positive Surprise?
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is +2.35%. This is a
meaningful and leading indicator of a positive earnings surprise.
: Unum Group has a Zacks Rank #3 (Hold) increases the predictive
power of ESP. Note that stocks with Zacks Rank #1, 2 and 3 have
significantly higher chances of beating earnings. The Sell-rated
stocks (#4 and 5) should never be considered going into an
The right combination of two key ingredients makes us confident
of a positive earnings beat this release.
What is Driving the Better-than-Expected
Disciplined underwriting, pricing, underwriting and reservation
practices are expected to aid solid results for Unum in the first
Continued buybacks will also boost the bottom line.
In order to deal with the low interest rate environment, Unum has
consistently raised prices in those product areas which are most
affected by low rates. This in turn will drive favorable
The positive trend is backed by the trailing four-quarter average
surprise of 2.48%, much of which was contributed by the 48.9%
surprise achieved in the third quarter of 2013.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows these also have the right combination of elements to
post an earnings beat this quarter:
American Financial Group Inc
), earnings ESP of +2.04% and a Zacks Rank #3.
The Allstate Corporation
), earnings ESP of +0.88% and a Zacks Rank #3.
Radian Group Inc
) earnings ESP of +15.00% and a Zacks Rank #3.
AMER FINL GROUP (AFG): Free Stock Analysis
ALLSTATE CORP (ALL): Free Stock Analysis
RADIAN GRP INC (RDN): Free Stock Analysis
UNUM GROUP (UNM): Free Stock Analysis Report
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