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Aflac Inc (NYSE:AFL) stock was last seen down 3.6% to trade at $104.83, after the insurance company posted lower-than-expected first-quarter earnings and revenue amid investment losses, despite impressive growth in Japan. A short-term rally could be in the works, though, as the stock is flashing a historically bullish signal.
Shares are within one standard deviation of their 50-day moving average (representing half a year of trading). Per Senior Quantitative Analyst Rocky White, AFL was above this this trendline in at least eight of the last 10 trading days and also spent 80% of the last six months above it. Within these parameters, seven other signals occurred in the past five years. AFL was higher one month later 71% of the time, averaging a 4% gain.
Should AFL move higher, analyst bull notes could provide tailwinds. Of the 16 analysts covering Aflac stock, 13 still carry a "hold" or worse rating, leaving plenty of room for upgrades.