If You Invested $1000 in Aflac a Decade Ago, This is How Much It'd Be Worth Now

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.What if you'd invested in Aflac (AFL) ten years ago? It may not have been easy to hold on to AFL for all that time, but if you did, how much would your investment be worth today?Aflac's Business In-DepthWith that in mind, let's take a look at Aflac's main business drivers. Aflac Incorporated was formed in 1973 under the laws of the state of Georgia. The company is a general business holding company and oversees the operations of its subsidiaries by providing management services and making capital available.Its principal business is voluntary supplemental and life insurance, which is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the United States (Aflac U.S.) and, effective Apr 1, 2018, through Aflac Life Insurance Japan Ltd. in Japan (Aflac Japan). Aflac primarily operates in these two countries. The majority of the company's policies are individually underwritten and marketed through independent agents.Aflac Japan (60.1% of the adjusted revenues in 2023) offers supplemental insurance products including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans and annuities.At 2023-end, 80% of the company's total assets were attributable to Aflac Japan. The firm founded Aflac Re Bermuda Ltd. in 2022 to reinsure some products issued by Aflac Life Insurance Japan.Aflac U.S. (37.3%) markets and administers group products through Continental American Insurance Company (CAIC). The segment offers products including accident, critical illness, cancer, short-term disability, long-term care and disability, as well as term and whole life insurance in the domestic market. This unit also provides dental, vision, hospital indemnity and other products.The remaining portion in adjusted revenues is contributed by the Corporate and Other (2.6%).Bottom LinePutting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Aflac, if you bought shares a decade ago, you're likely feeling really good about your investment today.According to our calculations, a $1000 investment made in November 2014 would be worth $3,820.53, or a gain of 282.05%, as of November 29, 2024, and this return excludes dividends but includes price increases.Compare this to the S&P 500's rally of 190.14% and gold's return of 117.19% over the same time frame.Analysts are forecasting more upside for AFL too. Aflac's third-quarter earnings beat estimates. The company's U.S. segment is poised for growth with multiple product launches and the expansion of a virtual sales channel. Its expense-saving initiatives are likely to improve the expense ratio and boost the bottom line in the future. Lower benefits and claims will support future results, while a world-class investment platform and strong investment income continue to drive performance. Its investments in digital transformation will enhance operational efficiency and boost customer satisfaction and product sales. AFL has a strong balance sheet with a favorable solvency position. However, softness persists in the Japan segment, evident from its declining premiums. The declining free cash flows reflect weakness in AFL's operations. As such, the stock warrants a cautious stance. Shares have gained 8.88% over the past four weeks and there have been 7 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.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. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aflac Incorporated (AFL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks