Columbus, Georgia-based Aflac Incorporated (AFL) operates as a holding company, offering supplemental health insurance and life insurance through its subsidiaries. With a market cap of $55.4 billion, Aflac sells its products through individual brokers, corporates, corporate agencies, banks, etc., and operates through Aflac Japan and Aflac U.S. segments.

The insurance giant has underperformed the broader market over the past year. AFL stock has gained a modest 2.6% over the past 52 weeks and a marginal 8 bps in 2025, substantially lagging behind the S&P 500 Index’s ($SPX) 20.1% surge over the past 52 weeks and 8.6% gains in 2025.

Zooming in further, Aflac has also underperformed the Financial Select Sector SPDR Fund’s (XLF) 22.8% gains over the past year and 7.3% returns on a YTD basis.

Aflac’s stock prices gained 3.4% in the trading session following the release of its better-than-expected Q2 results on Aug. 5. During the quarter, Aflac observed a net investment loss of $421 million, compared to $696 million net investment gains reported in the year-ago quarter. This led to a 19% year-over-year drop in its overall revenues to $4.2 billion. However, this figure surpassed the Street’s expectations by 2.3%.

Meanwhile, the company experienced a notable improvement in non-GAAP margin, which curtailed the drop in earnings. Its adjusted EPS dipped 2.7% year-over-year to $1.78 and exceeded consensus estimates by 4.1%.

For the full fiscal 2025, ending in December, analysts expect AFL to deliver an adjusted EPS of $6.81, down 5.6% year-over-year. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates twice over the past four quarters, it missed the estimates on two other occasions.

The stock has a consensus “Hold” rating overall. Of the 16 analysts covering the stock, opinions include two “Strong Buys,” one “Moderate Buy,” 10 “Holds,” and three “Strong Sells.”

This configuration has remained stable in recent months.

On Aug. 6, UBS analyst Brian Meredith maintained a “Neutral” rating on AFL, but lowered the price target from $114 to $111.

Aflac’s mean price target of $106.21 represents a 2.6% premium to current price levels. Meanwhile, the Street-high target of $124 suggests a 19.8% upside potential.