Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

More Galleries
Sports teams want you back in the stadium Stadium attendance is down so pro sports teams are using technology to win back fans and get them in their seats. More
Homes in these ZIP codes are selling like crazy Strong job growth, growing interest from Millennials and affordable home prices are attracting home buyers to these cities. More
Working class whites & the government: It's complicated These Clearfield, Pennsylvania, residents are mad at D.C., but want more help. More

Special Offer
4 of 6
Aflac Inc.
Aflac Inc.
Market capitalization: $32.1 billion
Write-offs since 2005: 1%
Debt to capital ratio: 14%

You've seen the commercials, but you may not have realized that the life and health insurance company with the hit ad campaign is a hot buy for investors.

The stock is up more than 45% with earnings up 20% since the beginning of 2007, showing rapid growth even as the economy has sputtered. That's because the company has a large amount of business abroad, especially in Japan. So Aflac has benefited from the dollar's weakness.

"Aflac has quite a few things going for them in their favor," said Check Capital Management chief investment officer Steve Check who runs a mutual fund with Aflac as its second-largest holding. "They have an exceptional return on equity and they keep on buying back stock, so there's not a whole lot not to like."

The shares trade at 16.6 times 2008 earnings estimates, which is a bit more expensive than other life insurance companies like Progressive, Assurant and Torchmark. But because the company has fared so well, it still looks like a good buy.

"It's a sold holding, but it's not super cheap," said Check. "But still, you can't go too wrong. For a superior company like this, it's probably not priced too high."

NEXT: Bank of Oklahoma Financial Corp.
Last updated June 04 2008: 1:46 PM ET
Source: Thomson Baseline