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Is The Hanover Insurance Group (THG) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 sporting a Zacks Rank #2 (Buy), as well as 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 27.22. 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THG has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that THG has a P/CF ratio of 11.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THG's P/CF compares to its industry's average P/CF of 12.12. THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62, all within the past year.
These are only a few of the key metrics included in The Hanover Insurance Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, THG looks like an impressive value stock at the moment.
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Is The Hanover Insurance Group (THG) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 sporting a Zacks Rank #2 (Buy), as well as 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 27.22. 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THG has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that THG has a P/CF ratio of 11.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THG's P/CF compares to its industry's average P/CF of 12.12. THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62, all within the past year.
These are only a few of the key metrics included in The Hanover Insurance Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, THG looks like an impressive value stock at the moment.