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The Hanover Insurance Group, Inc. (THG) Hit a 52 Week High, Can the Run Continue?

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Have you been paying attention to shares of Hanover Insurance Group (THG - Free Report) ? Shares have been on the move with the stock up 7.6% over the past month. The stock hit a new 52-week high of $193.32 in the previous session. Hanover Insurance has gained 5% since the start of the year compared to the 0.2% move for the Zacks Finance sector and the -3.3% return for the Zacks Insurance - Property and Casualty industry.

What's Driving the Outperformance?

The stock has an impressive 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 April 29, 2026, Hanover Insurance reported EPS of $5.25 versus consensus estimate of $4.14.

For the current fiscal year, Hanover Insurance is expected to post earnings of $18.45 per share on $6.95 in revenues. This represents a -3.35% change in EPS on a 4.73% change in revenues. For the next fiscal year, the company is expected to earn $18.49 per share on $7.29 in revenues. This represents a year-over-year change of 0.23% and 4.76%, respectively.

Valuation Metrics

Though Hanover Insurance has recently hit a 52-week high, what is next for Hanover Insurance? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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.

Hanover Insurance has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 10.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.5X. On a trailing cash flow basis, the stock currently trades at 9.8X versus its peer group's average of 9.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Hanover Insurance an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Hanover Insurance currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

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 Hanover Insurance passes the test. Thus, it seems as though Hanover Insurance shares could have potential in the weeks and months to come.

How Does THG Stack Up to the Competition?

Shares of THG 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 HCI Group, Inc. (HCI - Free Report) . HCI has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.

Earnings were strong last quarter. HCI Group, Inc. beat our consensus estimate by 6.24%, and for the current fiscal year, HCI is expected to post earnings of $17.82 per share on revenue of $959.64 million.

Shares of HCI Group, Inc. have gained 0.1% over the past month, and currently trade at a forward P/E of 8.78X and a P/CF of 6.59X.

The Insurance - Property and Casualty industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for THG and HCI, even beyond their own solid fundamental situation.

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