Should I buy Unum Group stock in 2025?

Why trust HelloSafe?

At HelloSafe, our expert has been monitoring Unum Group's performance for more than three years. Each month, hundreds of thousands of users across the United States trust us to make sense of market trends and highlight the best investment opportunities. Our analyses are intended purely for informational purposes and should not be considered investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Unum Group.

What is Unum Group?

How much is Unum Group stock?

The price of Unum Group stock is rising this week. As of now, UNM is trading at $52.89, marking a 0.84% increase in the last 24 hours and a 1.37% gain over the past week. The company boasts a market capitalization of $10.14 billion, with a 3-month average trading volume of 1.31 million shares. Unum’s current P/E Ratio stands at 7.92, while the dividend yield is an attractive 2.97%, and its beta is 0.84. With relatively low volatility and a stable performance, Unum Group may appeal to investors seeking both growth and income potential.

Our full analysis on Unum Group stock

After a comprehensive review of Unum Group’s most recent quarterly financial disclosures and a granular evaluation of its stock price evolution over the last three years, a robust multi-factor analysis reveals a compelling narrative. Drawing on a blend of classic financial metrics, advanced technical cues, broad market data, and comparative competitor assessment—synthesized via our proprietary algorithmic models—one theme consistently emerges. So, why might Unum Group stock once again become a strategic entry point into the insurance and employee benefits sector in 2025?

Recent Performance and Market Context

Unum Group (NYSE: UNM) has exhibited admirable resilience and upward momentum in recent quarters, outperforming several industry benchmarks and solidifying investor confidence. In 2023, the stock appreciated approximately 16%, and year-to-date performance continues to trend positively, trading in the $48-$52 band as of June 2024—near multi-year highs. This trajectory is no mere product of technical exuberance; it’s rooted in a sequence of positive earnings surprises and upwardly revised guidance stemming from robust premium growth, disciplined expense management, and impressive risk mitigation.

• Unum’s core U.S. group disability, life, and supplemental businesses all delivered healthy premium growth.
• The company has consistently surpassed analysts’ EPS estimates, with Q1 2024 adjusted operating EPS up 11% year-over-year.
• Credit quality remains robust, with conservative asset allocations and below-industry-average credit losses.

Moreover, the macroeconomic environment is largely supportive. Elevated employment rates and wage growth are translating into higher in-force premium volumes and improved claims experience. The broader insurance sector, buoyed by rising interest rates and firmer pricing power, is in a cyclical sweet spot—amplifying Unum’s earnings potential and creating an environment where fundamental outperformance is rewarded by the market.

Technical Analysis

A methodical technical review suggests that Unum is at a pivotal stage—offering a notably attractive risk-reward profile for prospective purchasers. Current price action:

• The stock maintains a pronounced uptrend above the 50-day ($49.00) and 200-day ($46.80) simple moving averages, indicative of strong underlying momentum.
• Relative Strength Index (RSI) hovers near 62, away from overbought territory, leaving further upside plausible without an imminent correction.
• MACD (Moving Average Convergence Divergence) remains in positive territory with bullish crossover signals persisting since mid-April 2024.
• $48 is emerging as a firm technical support, while $54 marks a near-term resistance. The stock’s repeated rebounds off the $48-$49 region—coupled with increasing volumes—underscore accumulating investor interest at these levels.

Short- and medium-term structures echo these bullish technicals. A consistent pattern of higher highs and higher lows hints at an imminent breakout, especially if volumes continue apace and the sector backdrop remains constructive. All told, the technical configuration lends strong credence to the thesis that Unum is poised at, or even ahead of, a new bullish leg.

Fundamental Analysis

Unum’s fundamental backdrop is anchored by sound, sustainable growth in both revenue and earnings quality. In its most recent reporting:

• Revenue increased 5% year-over-year to $3.16 billion, fueled by strength across group benefits and voluntary offerings.
• Net income soared, with trailing twelve-month ROE (return on equity) approaching 15%, comfortably above the peer median.
• Operating margins remain healthy at ~9%, reflecting prudent underwriting and disciplined expense control.
• The company’s solvency ratio and risk-based capital positions are among the strongest in the industry.

From a valuation perspective, Unum appears attractively priced:

• The current P/E ratio is under 7.8x (as of June 2024), markedly below both sector averages and historical medians, even as earnings quality has improved.
• PEG ratio stands at 0.82, signaling above-average expected growth for the valuation multiple.
• Price-to-book remains a conservative 0.96, underscoring a margin of safety for conservative investors.

Strategically, Unum continues to lean into digital transformation and customer-centric product innovation—a critical determinant of market resilience and future share gains. Recent technology-driven enhancements to claims processing and risk analytics have produced measurable efficiency gains. Moreover, brand strength among employers and workplace benefit brokers enables recurring premium streams and low customer churn rates—structural advantages not easily replicated by less diversified providers.

Volume and Liquidity

Recent trading volumes provide yet another layer of validation. Unum’s daily share turnover has averaged 1.3 to 1.6 million shares over the trailing three months—well above historical norms for the stock and indicative of both institutional conviction and sturdy liquidity. This heightened activity reflects broad-based investor engagement, not just short-term trading, but intermediate capital re-allocation by sector specialists.

The share float remains robust but not excessive, facilitating both attractive price discovery and sustained coverage by analyst and institutional desks. This environment not only keeps UNM in focus among market participants but also helps support dynamic valuation recalibrations as positive company developments unfold.

Catalysts and Positive Outlook

Looking ahead, several catalysts could underpin further outperformance:

• Product Innovation: Rollouts of new digital benefit administration tools and expanded voluntary benefit offerings are winning market share among mid-sized enterprise clients.
• M&A Potential: While not yet priced in, Unum’s strong capital position and modest leverage profile position the company to be opportunistically acquisitive or to further enhance shareholder returns via dividend increases and share buybacks.
• Regulatory Tailwinds: Recent Department of Labor rulings are expected to increase demand for employer-sponsored disability and supplemental health products, favoring market leaders such as Unum.
• ESG Leadership: Unum’s expansion of its ESG commitment, including enhanced disability inclusion and workforce accessibility initiatives, strengthens its institutional appeal, particularly among ESG-focused funds.
• Rate Normalization: As interest rates stabilize at higher levels, portfolio yields on Unum’s conservative investment book could continue to improve, amplifying investment income and driving further EPS gains.

The alignment of sector tailwinds (strong labor markets, favorable regulatory change), company-specific initiatives (product innovation, operational digitization), and a shareholder-friendly capital allocation policy provide a potent cocktail for sustainable earnings growth and multiple expansion.

Investment Strategies

The current setup appears to offer an ideal entry for a range of investment horizons:

• Short Term (1-3 months): Technical strength near the $48-$49 support band, coupled with a series of positive earnings releases and policy updates, may fuel swift interim upside toward the $54 resistance zone.
• Medium Term (3-12 months): Continued growth in core business lines and persistent outperformance of peer financial metrics—especially earnings surprises—may propel the stock to forge new 52-week highs. Initiatives in digital and supplemental health positioning Unum to ride secular growth themes beyond traditional insurance cycles.
• Long Term (12 months+): Unum’s entrenched position in U.S. employer benefits, rising digital engagement, and prudent capital management suggest an enviable base for compounding shareholder value—through both price appreciation and a sustainable, growing dividend yield (currently above 3.0%).

Entry at current technical support levels, particularly ahead of the next quarterly earnings and pending product launches, seems fundamentally and tactically sound for investors seeking exposure to the evolving workplace benefits landscape.

Is It the Right Time to Buy Unum Group?

In summary, Unum Group stands out for its:

• Solid earnings growth and premium momentum
• Attractive valuation below historical and peer norms
• Confirming technical and volume signals
• High-quality balance sheet and industry leadership
• Upcoming catalysts via innovation, regulatory shifts, and enhanced shareholder returns

With multiple bullish signals aligned—across technical, fundamental, and market dimensions—Unum Group seems to represent an excellent opportunity in today’s markets. The convergence of improving financial performance, compelling valuation, and constructive technicals justifies serious, renewed interest from investors of all stripes. As the sector continues to evolve and workplace dynamics favor premium benefit providers, Unum’s stock may be entering a new bullish phase, offering both resilience and upside potential for forward-looking investors.

In today’s market, Unum Group seems to offer one of the sector’s most attractive entry points—a timely convergence of growth, value, and strategic momentum that is hard for discerning investors to ignore.

How to buy Unum Group stock in United States?

Buying Unum Group stock online is now simpler and more secure than ever when using a regulated U.S. brokerage platform. Investors can choose between two main approaches: purchasing shares directly (“spot buying”) or trading Contracts for Difference (CFDs) that replicate share price movements. Spot buy offers ownership, while CFDs enable leveraged trading. Each method has advantages and costs to consider. To help you select the right brokerage for your goals, we provide an in-depth broker comparison further down the page.

Spot Buying

A cash purchase (spot buying) means you buy Unum Group shares directly on the stock market, becoming the beneficial owner with the rights to dividends and voting. U.S. online brokers typically charge a fixed commission per trade—often between $0 and $10—which is added to your order total.

Important Information

Example:
Suppose Unum Group stock trades at $53 per share. With a $1,000 investment and a $5 commission, you could buy approximately 18 shares ($1,000 − $5 = $995; $995 ÷ $53 ≈ 18 shares).
✔️ Gain scenario:
If the share price increases by 10%, those 18 shares are now worth $1,170.
Result: Gross gain of +$100, or +10% on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Unum Group shares’ price movements without directly owning them. CFDs let you use leverage, amplifying exposure with a smaller initial outlay. Instead of commissions, CFD brokers usually charge a spread (small difference between the buy and sell price) and “overnight financing” fees if positions are held over several days.

Important Information

Example:
You open a CFD on Unum Group using $1,000 and 5:1 leverage, giving you market exposure of $5,000.
✔️ Gain scenario:
If Unum Group stock rises by 8%, your position increases by 40% (8% × 5 leverage), resulting in a $400 gain on $1,000 at risk—excluding any spread or overnight fees.

Final Advice

Before you invest, it’s vital to carefully compare brokers’ fees, trading conditions, and available features, as these factors can significantly impact your returns. A detailed broker comparison tool is available further down this page. Ultimately, your choice between spot buying and CFD trading should reflect your financial objectives, risk tolerance, and preferred investment style.

Application

Rates & Fees

Learn More

#1

30+ million users

#1Recommended by Forbes

eToro

Rates & Fees

4.9

Discover

51% of CFD accounts lose money. You will never lose more than your investment.

#2

CFD and Indices Expert

#2

IG

Rates & Fees

4.9

Discover

74% of CFD accounts lose money. Your capital is at risk.

#3

CFD specialist

#3

Avatrade

Rates & Fees

4.8

On the broker's website

Our 7 tips for buying Unum Group stock

The latest news about Unum Group

Unum Group reported strong first-quarter 2024 earnings, surpassing analyst expectations and raising full-year guidance. On May 1, Unum Group posted adjusted operating earnings per share of $2.12 for Q1 2024, significantly above the consensus estimate of $1.98, reflecting robust performance across its core business segments. Management attributed this outperformance to solid premium growth, disciplined pricing strategies, and continued favorable mortality trends in its Unum US segment. In conjunction with the results, Unum raised its full-year adjusted operating EPS guidance, citing sustained demand for employee benefits solutions and continued momentum in its group disability and supplemental offerings in the U.S. market.

The company declared an increased quarterly dividend, strengthening its total shareholder return profile. On May 16, Unum Group’s Board of Directors approved an 11% increase in the quarterly dividend to $0.425 per share, payable in August 2024. This move underscores Unum’s confidence in its cash flow stability and capital position, and marks the 15th consecutive annual dividend increase. The dividend boost is particularly relevant for yield-oriented investors and highlights the company’s ongoing commitment to returning capital to shareholders, which is likely to support investor sentiment and provide tailwind for the stock.

Management highlighted the resilience of Unum’s U.S.-focused portfolio amid ongoing macroeconomic uncertainty. During the Q1 earnings call, senior leadership emphasized that Unum’s business mix, with a major focus on U.S. group and supplemental benefits, has proven resilient in the face of elevated interest rates and persistent inflation. Premium growth, particularly in the group disability and life insurance lines, remained strong, and the company recorded favorable claims experience as U.S. labor markets and employer demand for benefits remain robust. This underlines Unum's strategic advantage in being closely aligned with domestic employment and wage trends, buffering potential macroeconomic shocks.

The recent successful bond issuance has further strengthened Unum’s capital structure and provided additional financial flexibility. On May 21, Unum announced the completion of a $600 million senior notes offering, with proceeds earmarked for refinancing existing debt and for general corporate purposes. The company achieved favorable pricing terms, reflecting investor confidence in Unum’s credit fundamentals and ongoing risk management discipline. This transaction is expected to reduce future interest expenses and enhance the group’s ability to reinvest in technology, service enhancements, and growth initiatives within the U.S. market.

Analysts from major institutions reaffirmed positive outlooks on Unum following earnings and dividend actions, increasing the stock’s attractiveness. In the aftermath of Unum’s earnings release and dividend hike, research analysts at firms such as JPMorgan, Wells Fargo, and Barclays reiterated overweight and buy ratings on the stock, while revising price targets upward. These endorsements highlighted Unum Group’s operational outperformance, prudent capital management, and sustainable competitive position in the U.S. employee benefits sector. The uptick in analyst optimism has contributed to favorable market reactions and bolstered the company’s valuation multiples relative to industry peers.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.