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Is Aflac Stock Underperforming the Nasdaq?

Aflac Incorporated (AFL), with a market cap of $57.8 billion, is a prominent provider of supplemental health and life insurance, primarily serving customers in the United States and Japan. Founded in 1955 and headquartered in Columbus, Georgia, the company is widely recognized for its iconic Aflac Duck advertising campaign.

Companies worth $10 billion or more are generally described as "large-cap stocks." Aflac fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the insurance industry. The company benefits from a diversified presence in both the U.S. and Japanese markets, providing stable revenue streams and exposure to different economic environments. Its focus on supplemental health and life insurance products allows Aflac to target niche markets with less competition than traditional life insurers.

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AFL touched its all-time high of $115.83 on Nov. 14, and is currently trading 5.4% below that peak. Meanwhile, AFL stock has observed a 2.5% uptick over the past three months, lagging behind the Nasdaq Composite’s ($NASX8.5% rise during the same time frame.

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Aflac’s longer-term performance has also been lackluster. AFL shares have gained just 5.9% year-to-date and declined 3.9% over the past 52 weeks, trailing the Nasdaq’s 20.5% rise in 2025 and 21.1% advance over the past year.

Additionally, the stock has traded below its 50-day and 200-day moving averages since early November and mid-August, respectively, reflecting continued downward pressure rather than a sustained uptrend.

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On Nov. 11, Aflac’s Board declared a first-quarter 2026 dividend of $0.61 per share, payable Mar. 2, marking a 5.2% increase over the previous quarter. CEO Daniel Amos highlighted the company’s 43-year streak of consecutive dividend increases, attributing it to strong capital and cash flow management, while emphasizing the company’s commitment to policyholder obligations and prudent capital deployment.

When compared to its peer, Aflac has outperformed MetLife, Inc.’s (MET6.8% dip in 2025 and 13.5% plunge over the past 52 weeks.

Aflac maintains a consensus “Hold” rating among the 16 analysts covering the stock. Its mean price target of $110.21 reflects a marginal premium from the current market prices. 


On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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