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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.

An HR specialist consulting with a business owner about employee benefits programs.

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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Large Cap Tech Stocks to Buy Now and 10 Best Big Tech Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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