Here's Why Investors Should Add Aflac Stock to Their Portfolio Now

Aflac Incorporated AFL is well-poised to grow on the back of a strong U.S. business, product launches and upgrades coupled with expanding cash reserves.AFL’s Zacks Rank & Price PerformanceAFL currently carries a Zacks Rank #2 (Buy).The stock has gained 30.1% in the past six months compared with the industry’s 33.1% growth. The Finance sector and the S&P 500 Composite have risen 10.1% and 14.2%, respectively, in the same time frame.Image Source: Zacks Investment ResearchTrend in EstimatesThe Zacks Consensus Estimate for AFL’s 2024 earnings is pegged at $7.27 per share, indicating growth of 16.7% from the prior-year figure. The consensus mark for 2025 earnings is pegged at $7.21 per share. The Zacks Consensus Estimate for 2024 earnings has been revised 6.4% upward in the past 30 days.Key DriversAflac's revenues are bolstered by strong sales in its U.S. and Japan segments, driven by strategic growth investments, robust persistency rates and enhanced productivity. The company designs and markets supplemental insurance products across both countries through its Japan and U.S. segments. Increased sales of these products are likely to boost its premiums in the days ahead, which are a key contributor to an insurer’s revenue growth.Aflac introduces new products and upgrades existing ones to address its customers' changing needs. In July 2024, it partnered with SKYGEN to enhance dental and vision benefits management, leveraging advanced technology and streamlined processes to boost customer satisfaction and product sales. AFL’s Japan unit launched Tsumitasu, which targets young and middle-aged customers. This launch drove the 12.3% increase in third-quarter sales. Upcoming cancer insurance product for spring 2025 should further support this metric.The company also integrates digital solutions into its offerings to align with the ongoing trend of digitization. Aflac’s significant investments in digital transformation have improved operational efficiencies and facilitated a shift to digital sales channels, which could continue to support strong profit margins in the days ahead. The expense ratio in the U.S. improved 260 basis points year over year in the third quarter.Aflac’s solid financial position, supported by a strong cash balance and substantial cash flow, is a key strength. As of Sept. 30, 2024, cash and cash equivalents surged 30.2% from the 2023-end level. In the nine months of 2024, Aflac generated $2.4 billion in operating cash flows. This financial stability enables the company to pursue growth initiatives and engage in prudent capital deployment through share repurchases and dividend payments.Other Stocks to ConsiderSome other top-ranked stocks in the insurance space are Kemper Corporation KMPR, CNO Financial Group, Inc. CNO and Primerica, Inc. PRI. Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Kemper’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, met once and missed the other time, with an average surprise of 10.5%. The Zacks Consensus Estimate for KMPR’s 2024 earnings indicates an 824.3% year-over-year rise. Its revenues for 2024 are projected to be $4.6 billion. The consensus mark for KMPR’s earnings has moved 6.8% north in the past 30 days.CNO Financial’s earnings surpassed estimates in three of the last four quarters and missed once, with an average surprise of 24.5%. The Zacks Consensus Estimate for CNO’s 2024 earnings indicates a 20.7% year-over-year rise. Its revenues are projected to be $3.7 billion in 2024. The consensus mark for CNO’s 2024 earnings has moved 8.7% north in the past 30 days.Primerica’s earnings outpaced estimates in two of the trailing four quarters and missed twice, the average surprise being 4.9%. The Zacks Consensus Estimate for PRI’s 2024 earnings is pegged at $19.32 per share. Meanwhile, revenues are projected to be $3 billion for 2024. The consensus mark for PRI’s 2024 earnings has moved up 1% in the past 30 days.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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