With a market cap of $58.3 billion, Aflac Incorporated (AFL) engages in the provision of supplemental health and life insurance products in the United States and Japan. Headquartered in Columbus, Georgia, the company operates in two segments: Aflac Japan and Aflac U.S.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Aflac fits this description perfectly. The American Insurance Company is the largest provider of supplemental insurance in the United States. AFL sells its products through individual, independent corporate, and affiliated corporate agencies; banks; independent associates/career agents; and brokers.
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The leading insurance provider dipped 7.6% from its 52-week high of $115.50. Aflac shares have climbed 2.4% over the past three months, outpacing the iShares Global Financials ETF’s (IXG) marginal decline in the same period.
Over the last 52 weeks, AFL shares have gained 30%, exceeding IXG’s 18.7% increase. However, AFL has risen 3.2% on a YTD basis, slightly lagging behind IXG’s 3.9% gain in the same time period.
AFL has been trading above its 200-day moving average, and also, despite some fluctuations, it has been trading mostly above its 50-day moving average.
Despite reporting weaker-than-expected Q4 2024 adjusted revenue of $4.3 billion and earnings of $1.62 per share, AFL rose up marginally on Feb. 5. However, Aflac’s segment Japan grew 9% with new annualized premiums driven by the Tsumitasu product. Additionally, the company also announced a 16% dividend increase to maintain strong cash flows and prioritize long-term shareholder value.
In comparison with its rival, Prudential Financial, Inc. (PRU) has lagged behind AFL, declining 4.3% over the past 52 weeks. In addition, PRU also dipped 10.3% on a YTD basis.
Regardless of AFL’s outperformance over the last year, analysts are cautious about its prospects. Among the 17 analysts covering the stock, there is a consensus rating of “Hold”, and as of writing it is trading above the mean price target of $104.13.
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