What Happened?
Shares of employee benefits provider Unum Group (NYSE: UNM) fell 9.5% in the afternoon session after the company reported a decline in second-quarter profit and missed analyst earnings expectations. The insurance provider's adjusted operating earnings per share for the second quarter came in at $2.07, missing the consensus estimate of $2.22. Additionally, net income dropped 13.8% to $335.6 million compared to the same period in the prior year. The negative results were largely driven by weakness in its core Unum US segment, which experienced a 16.2% decline in sales and an 11% drop in adjusted operating income. The company attributed the poor performance to higher costs stemming from disability and life insurance claims. While total revenue and premium income showed modest growth, the significant fall in profitability raised concerns among investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Unum Group? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Unum Group’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Unum Group is up 0.4% since the beginning of the year, but at $73.20 per share, it is still trading 12.2% below its 52-week high of $83.34 from March 2025. Investors who bought $1,000 worth of Unum Group’s shares 5 years ago would now be looking at an investment worth $4,266.
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