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United Fire Group, Inc (UFCS) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of United Fire Group (UFCS - Free Report) ? Shares have been on the move with the stock up 18.1% over the past month. The stock hit a new 52-week high of $32.13 in the previous session. United Fire has gained 11.6% since the start of the year compared to the 13% gain for the Zacks Finance sector and the 7.5% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 5, 2025, United Fire reported EPS of $0.9 versus consensus estimate of $0.57.
For the current fiscal year, United Fire is expected to post earnings of $2.74 per share on $1.37 in revenues. This represents a 7.03% change in EPS on a 9.45% change in revenues. For the next fiscal year, the company is expected to earn $2.85 per share on $1.51 in revenues. This represents a year-over-year change of 4.01% and 10.12%, respectively.
Valuation Metrics
While United Fire has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
United Fire has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.9X. On a trailing cash flow basis, the stock currently trades at 10.4X versus its peer group's average of 12.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making United Fire an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, United Fire currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if United Fire passes the test. Thus, it seems as though United Fire shares could have a bit more room to run in the near term.
How Does UFCS Stack Up to the Competition?
Shares of UFCS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CNA Financial Corporation (CNA - Free Report) . CNA has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. CNA Financial Corporation beat our consensus estimate by 30.85%, and for the current fiscal year, CNA is expected to post earnings of $4.49 per share on revenue of $13.54 billion.
Shares of CNA Financial Corporation have gained 11% over the past month, and currently trade at a forward P/E of 10.99X and a P/CF of 11.29X.
The Insurance - Property and Casualty industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for UFCS and CNA, even beyond their own solid fundamental situation.
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United Fire Group, Inc (UFCS) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of United Fire Group (UFCS - Free Report) ? Shares have been on the move with the stock up 18.1% over the past month. The stock hit a new 52-week high of $32.13 in the previous session. United Fire has gained 11.6% since the start of the year compared to the 13% gain for the Zacks Finance sector and the 7.5% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 5, 2025, United Fire reported EPS of $0.9 versus consensus estimate of $0.57.
For the current fiscal year, United Fire is expected to post earnings of $2.74 per share on $1.37 in revenues. This represents a 7.03% change in EPS on a 9.45% change in revenues. For the next fiscal year, the company is expected to earn $2.85 per share on $1.51 in revenues. This represents a year-over-year change of 4.01% and 10.12%, respectively.
Valuation Metrics
While United Fire has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
United Fire has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.9X. On a trailing cash flow basis, the stock currently trades at 10.4X versus its peer group's average of 12.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making United Fire an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, United Fire currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if United Fire passes the test. Thus, it seems as though United Fire shares could have a bit more room to run in the near term.
How Does UFCS Stack Up to the Competition?
Shares of UFCS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CNA Financial Corporation (CNA - Free Report) . CNA has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. CNA Financial Corporation beat our consensus estimate by 30.85%, and for the current fiscal year, CNA is expected to post earnings of $4.49 per share on revenue of $13.54 billion.
Shares of CNA Financial Corporation have gained 11% over the past month, and currently trade at a forward P/E of 10.99X and a P/CF of 11.29X.
The Insurance - Property and Casualty industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for UFCS and CNA, even beyond their own solid fundamental situation.