Wells Fargo Sees Long-Term Upside in Unum (UNM) Despite Earnings Headwinds

Unum Group (NYSE:UNM) is one of the deep value stocks to buy according to analysts. On July 31, a Wells Fargo analyst lowered the price target on Unum Group to $100 from $105 but kept an Overweight rating on the stock. The adjustment followed a weaker-than-expected quarterly report and cautious guidance, which weighed heavily on investor sentiment.

The analyst also pointed out that Unum’s cautious commentary on market conditions had a broader effect, dragging down sentiment across the group benefits space.

On July 29, Unum Group reported softer Q2 2025 results, which came in below street expectations. Its net income of $335.6 million, or $1.92 per diluted share, declined 14% compared to $389.5 million in the year-ago period. Adjusted operating income also fell around 12% to $361.1 million, from the prior-year quarter.

These numbers were disappointing, notably after the company reported a 4% surge in revenue to $3.4 billion. Moreover, the company has now revised its full-year outlook for adjusted operating EPS sharply down to roughly $8.50. This implies a year-over-year growth of mere 0.7%, versus its earlier guidance of 6%-10%.

That said, capital deployment remains a focus for the company, with $300 million in share repurchases during the quarter, bringing year-to-date buybacks to $500 million. Management now expects repurchases at the upper end of the $500 million-$1.0 billion guidance range for 2025.

Unum Group (NYSE:UNM) is a provider of workplace benefits and services. It offers disability, life, accident, critical illness, dental, and vision insurance; leave and absence management support; and behavioural health services.

While we acknowledge the potential of UNM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.