Valued at $58.3 billion by market cap, Aflac Incorporated (AFL) is a prominent player in the insurance and financial services sector. Headquartered in Columbus, Georgia, the company specializes in supplemental health and life insurance products, providing financial protection to individuals and families.
Companies valued at over $10 billion are categorized as “large-cap stocks,” and Aflac Incorporated fits the description through its robust market presence, innovation, and leadership in the supplemental insurance sector. Aflac’s dedication to providing financial protection and addressing unexpected healthcare expenses highlights its stability, adaptability, and ability to excel in a competitive and ever-evolvingglobal market
Aflac's shares are down 9.8% from their 52-week high of $115.50, achieved on Oct. 4. Over the past three months, the stock has declined 3.9%, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 8.6% gains over the same time frame.
However, over the longer term, AFL stock has risen 26.3% over the past 52 weeks and gained 26.3% on a YTD basis, surging past the Dow's YTD growth of 17.4% and its 22.1% return over the past year.
AFL has consistently traded above its 200-day moving average over the past year. Although trading above the 50-day moving average, AFL has dipped below this level since early December.
On Oct. 30, Aflac reported its Q3 earnings, delivering mixed results that led to a 4.8% decline in shares during the subsequent trading session. Adjusted EPS exceeded expectations at $2.16, beating Wall Street's estimate of $1.70 and reflecting a 17.4% year-over-year increase. However, revenue fell 40.4% to $2.95 billion, significantly missing the projections, with weaker U.S. results and reduced share buybacks contributing to investor concerns.
Aflac’s rival, MetLife, Inc. (MET), outperforms AFL. Shares of MetLife are up 27.5% over the past 52 weeks.
Analysts maintain a cautious outlook on Aflac, given its recent weak price performance. The stock has a consensus "Hold" rating from 17 analysts, with a mean price target of $104.13, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 1 Nuclear Fuel Stock Is Still a Buy Thanks to Meta Platforms
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