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United Fire Group, Inc (UFCS) Hits Fresh High: Is There Still Room to Run?

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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 4.3% over the past month. The stock hit a new 52-week high of $55.82 in the previous session. United Fire has gained 49.5% since the start of the year compared to the 8.7% move for the Zacks Finance sector and the 5% return for the Zacks Insurance - Property and Casualty industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 3, 2026, United Fire reported EPS of $1.3 versus consensus estimate of $0.7.

For the current fiscal year, United Fire is expected to post earnings of $4.75 per share on $1.53 in revenues. This represents a 3.26% change in EPS on a 10.54% change in revenues. For the next fiscal year, the company is expected to earn $5.03 per share on $1.68 in revenues. This represents a year-over-year change of 5.79% and 9.59%, respectively.

Valuation Metrics

While United Fire has moved to its 52-week high over the past few weeks, 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 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.

United Fire 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 11.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 10.6X. 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 #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 United Fire passes the test. Thus, it seems as though United Fire shares could still be poised for more gains ahead.

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