Unum Group (UNM): Today's Featured Financial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Unum Group ( UNM) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Unum Group fell 23 cents (-1.2%) to $19.55 on average volume. Throughout the day, 2.6 million shares of Unum Group exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $19.47-$19.80 after having opened the day at $19.80 as compared to the previous trading day's close of $19.78. Other companies within the Financial sector that declined today were: Greene County Bancorp ( GCBC), down 11.5%, Impac Mortgage Holdings ( IMH), down 10.2%, Ampal-American Israel Corporation ( AMPL), down 9.8%, and Security National Financial Corporation ( SNFCA), down 9.3%.
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Unum Group, together with its subsidiaries, provides group and individual disability insurance products primarily in the United States and the United Kingdom. Unum Group has a market cap of $5.56 billion and is part of the insurance industry. The company has a P/E ratio of 23.9, below the average insurance industry P/E ratio of 24.5 and above the S&P 500 P/E ratio of 17.7. Shares are down 6.1% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Unum Group a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Unum Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

On the positive front, Oak Ridge Financial Services ( BKOR), up 13.9%, Carolina Trust Bank ( CART), up 10.5%, First United ( FUNC), up 10.3%, and HMN Financial ( HMNF), up 9.9%, were all gainers within the financial sector with Regions Financial Corporation ( RF) being today's featured financial sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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Today's Weak On High Volume Stock: Unum Group (UNM)