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Should Value Investors Buy The Hanover Insurance Group (THG) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is The Hanover Insurance Group (THG - Free Report) . THG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.86. This compares to its industry's average Forward P/E of 28.09. THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THG has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.35.
Finally, we should also recognize that THG has a P/CF ratio of 11.21. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.56. Within the past 12 months, THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62.
Value investors will likely look at more than just these metrics, but the above data helps show that The Hanover Insurance Group is likely undervalued currently. And when considering the strength of its earnings outlook, THG sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy The Hanover Insurance Group (THG) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is The Hanover Insurance Group (THG - Free Report) . THG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.86. This compares to its industry's average Forward P/E of 28.09. THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THG has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.35.
Finally, we should also recognize that THG has a P/CF ratio of 11.21. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.56. Within the past 12 months, THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62.
Value investors will likely look at more than just these metrics, but the above data helps show that The Hanover Insurance Group is likely undervalued currently. And when considering the strength of its earnings outlook, THG sticks out as one of the market's strongest value stocks.