A strong stock as of late has been Hanover Insurance Group (THG Quick QuoteTHG - Free Report) . Shares have been marching higher, with the stock up 2.8% over the past month. The stock hit a new 52-week high of $201.45 in the previous session. Hanover Insurance has gained 9% since the start of the year compared to the 4.3% move for the Zacks Finance sector and the -1.1% return for the Zacks Insurance - Property and Casualty industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each 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 $18.36 per share on $6.95 in revenues. This represents a -3.82% change in EPS on a 4.71% change in revenues. For the next fiscal year, the company is expected to earn $18.31 per share on $7.29 in revenues. This represents a year-over-year change of -0.32% and 4.76%, respectively.

Valuation Metrics

Hanover Insurance may be at a 52-week high right now, but what might the future hold for the stock? 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 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.

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

In terms of its value breakdown, the stock currently trades at 10.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11X. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 10.2X. 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 supersedes any trend on the style score front. Fortunately, Hanover Insurance currently has a Zacks Rank of #2 (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 fits the bill. 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 Mercury General Corporation (MCY Quick QuoteMCY - Free Report) . MCY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. Mercury General Corporation beat our consensus estimate by 62.79%, and for the current fiscal year, MCY is expected to post earnings of $11.38 per share on revenue of $6.38 billion.

Shares of Mercury General Corporation have gained 1.2% over the past month, and currently trade at a forward P/E of 9.02X and a P/CF of 11.09X.

The Insurance - Property and Casualty industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for THG and MCY, even beyond their own solid fundamental situation.