Bull of the Day: Aflac (AFL)

Aflac’s (AFL) third quarter earnings came in modestly ahead of the Zacks Consensus Estimate due to improved investment yields and a favorable dollar/yen exchange rate. Higher annual premiums across the U.S. and Japan, healthy capital ratios, credit rating stability and modest improvement in fair value of investments were among other positives.

Moreover, the recent dividend appreciation coupled with the resumption of its stock buyback program reflects Aflac’s fair liquidity while retaining investors’ confidence. However, higher operating expenses and a decline in annualized ROE partially dampen the positives.

Overall, we believe a stable economy in the long run will gather momentum and negate interest and currency risk, thereby providing more profitable investment opportunities for Aflac. Our six-month target price of $64.00 per share equates to about 11.5x our earnings estimate for 2010.

AFLAC INC (AFL): Free Stock Analysis Report

About Zacks Investment Research 1767 Articles

Zacks Investment Research is one of the most highly regarded firms in the investment industry. In 1978 Zacks originated the concept of utilizing earnings estimates revisions to make profitable investment decisions. Zacks offers multiple investment products and services to help investors achieve superior returns.

Visit: Zacks.com

Be the first to comment

Leave a Reply

Your email address will not be published.