The editor of Dow Theory Forecasts explains, "In our proprietary ranking system (known as Quadrix), the stock earns an Overall score of 99.
"At 10 times trailing earnings, the shares trade 33% below the five-year average P/E ratio of 15.
"The insurer's sales rose 13% in the ﬁrst nine months of this year, while free cash ﬂow rose 12%. At 10 times trailing earnings, shares trade 32% below the three-year average P/E ratio.
"Aflac continues to grow in Japan (about 75% of sales), but growth in the U.S. (roughly 25%) has been tougher to find.
"Management remains cautious about its U.S. outlook, but it should benefit as small companies, which make up a large portion of the domestic business, begin to hire again.
"Aflac -- yielding 2.2% -- is a Focus List Buy and a holding on our Long-Term Buy list."
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