Here's Why Aflac Stock is a Smart Addition to Your Portfolio

Core Insights - Aflac Incorporated (AFL) is experiencing growth driven by a strong U.S. business, product launches, and upgrades, along with expanding cash reserves [1] Financial Performance - Aflac currently holds a Zacks Rank 2 (Buy) and has seen its stock price increase by 44.2% over the past year, outperforming the industry growth of 37.1% [2] - The Zacks Consensus Estimate for Aflac's 2024 earnings is $6.73 per share, reflecting an 8% increase from the previous year, with a 2025 estimate of $7.06 per share, indicating a 4.8% growth from 2024 [3] - The earnings estimate for 2024 has been revised upward by 4.5% in the last 30 days [4] - Aflac has outperformed earnings estimates in three of the last four quarters, with an average surprise of 8.24% [5] - The return on equity for Aflac is 16.2%, slightly above the industry average of 16.1%, indicating effective use of shareholders' funds [6] Business Growth Drivers - Aflac's revenue growth is supported by strong sales in its U.S. segment, strategic growth investments, high persistency rates, and improved productivity [7] - The company is actively launching new products and upgrading existing ones to meet customer needs, including a partnership with SKYGEN for dental and vision benefits management and collaboration with Empathy for grief support services [7] - Aflac is integrating digital solutions into its offerings, enhancing operational efficiencies and shifting towards digital sales channels, which is expected to support profit margins [8] Financial Stability - Aflac's cash and cash equivalents increased by 40.7% from the end of 2023, with $1.1 billion generated in operating cash flows in the first half of 2024 [8] - The company's leverage ratio stands at 22.2%, lower than the industry average of 22.5%, indicating a solid financial position [8]