The market expects Hanover Insurance Group (THG - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis insurance company is expected to post quarterly earnings of $3.88 per share in its upcoming report, which represents a year-over-year change of -10.8%.
Revenues are expected to be $1.73 billion, up 4.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.25% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Hanover Insurance?For Hanover Insurance, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.39%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Hanover Insurance will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Hanover Insurance would post earnings of $4.14 per share when it actually produced earnings of $5.25, delivering a surprise of +26.81%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Hanover Insurance appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsKinsale Capital Group, Inc. (KNSL - Free Report) , another stock in the Zacks Insurance - Property and Casualty industry, is expected to report earnings per share of $5.09 for the quarter ended June 2026. This estimate points to a year-over-year change of +6.5%. Revenues for the quarter are expected to be $475.6 million, up 1.2% from the year-ago quarter.
The consensus EPS estimate for Kinsale Capital Group has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.33%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Kinsale Capital Group will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is The Hanover Insurance Group (THG - Free Report) . THG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.86 right now. For comparison, its industry sports an average P/E of 26.96. Over the past year, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 1.11. This compares to its industry's average P/S of 1.33.
Finally, investors should note 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.39. Over the past 52 weeks, 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.
Allspring Global Investments Holdings LLC lowered its position in The Hanover Insurance Group, Inc. (NYSE:THG – Free Report) by 7.0% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 401,539 shares of the insurance provider’s stock after selling 30,018 shares during the period. Allspring Global Investments Holdings LLC owned about 1.15% of The Hanover Insurance Group worth $69,189,000 as of its most recent SEC filing.
Several other hedge funds have also added to or reduced their stakes in the business. Norges Bank bought a new position in shares of The Hanover Insurance Group during the 4th quarter valued at about $83,817,000. Alliancebernstein L.P. lifted its stake in The Hanover Insurance Group by 36.1% in the second quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider’s stock valued at $217,505,000 after buying an additional 339,896 shares in the last quarter. AQR Capital Management LLC lifted its stake in The Hanover Insurance Group by 37.8% in the third quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider’s stock valued at $137,967,000 after buying an additional 209,616 shares in the last quarter. Invesco Ltd. increased its holdings in The Hanover Insurance Group by 44.1% during the 4th quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider’s stock worth $118,236,000 after purchasing an additional 197,930 shares in the last quarter. Finally, Balyasny Asset Management L.P. increased its holdings in The Hanover Insurance Group by 206.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider’s stock worth $53,058,000 after purchasing an additional 196,655 shares in the last quarter. Institutional investors and hedge funds own 86.61% of the company’s stock.
Insiders Place Their Bets In related news, Director Francisco Aristeguieta sold 1,000 shares of the company’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the sale, the director owned 4,053 shares of the company’s stock, valued at $791,834.61. This represents a 19.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Denise Lowsley sold 4,175 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $191.73, for a total transaction of $800,472.75. Following the completion of the transaction, the executive vice president owned 3,883 shares of the company’s stock, valued at $744,487.59. The trade was a 51.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 29,508 shares of company stock valued at $5,704,651 over the last 90 days. 2.80% of the stock is owned by company insiders.
The Hanover Insurance Group Trading Up 3.1% Shares of THG stock opened at $213.42 on Friday. The stock has a market cap of $7.47 billion, a P/E ratio of 10.74 and a beta of 0.28. The Hanover Insurance Group, Inc. has a 1 year low of $163.18 and a 1 year high of $225.29. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22. The stock has a 50 day simple moving average of $201.24 and a 200 day simple moving average of $184.78.
The Hanover Insurance Group (NYSE:THG – Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, topping analysts’ consensus estimates of $4.14 by $1.11. The firm had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The company’s revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the company earned $3.87 EPS. On average, research analysts predict that The Hanover Insurance Group, Inc. will post 18.38 earnings per share for the current fiscal year.
The Hanover Insurance Group announced that its Board of Directors has authorized a share buyback plan on Wednesday, May 13th that allows the company to repurchase $700.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 10.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.
The Hanover Insurance Group Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 12th were paid a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group’s payout ratio is 19.12%.
Wall Street Analysts Forecast Growth A number of brokerages have recently commented on THG. Weiss Ratings upgraded The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a report on Friday, May 22nd. Keefe, Bruyette & Woods reiterated a “market perform” rating and set a $220.00 price objective (up from $211.00) on shares of The Hanover Insurance Group in a report on Wednesday, July 8th. Morgan Stanley lifted their target price on The Hanover Insurance Group from $220.00 to $225.00 and gave the company an “equal weight” rating in a research report on Wednesday, July 8th. Citizens Jmp boosted their target price on The Hanover Insurance Group from $205.00 to $225.00 and gave the company a “market outperform” rating in a research note on Friday, July 10th. Finally, Piper Sandler downgraded The Hanover Insurance Group from an “overweight” rating to a “neutral” rating and set a $220.00 price target for the company. in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $218.29.
View Our Latest Stock Report on THG
The Hanover Insurance Group Profile (Free Report)
The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers’ compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.
In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.
Further Reading Five stocks we like better than The Hanover Insurance Group AST SpaceMobile Stock Sinks as SpaceX Fallout Rattles Space Sector Aehr Test Systems Stock Soars on Earnings, Eyes Over 150% Revenue Growth TSMC Just Gave AI Chip Bulls Another Reason to Stay Confident GE Aerospace Faces a Prove-It Moment in Q2 Earnings Want to see what other hedge funds are holding THG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Hanover Insurance Group, Inc. (NYSE:THG – Free Report).
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, /PRNewswire/ -- The Hanover Insurance Group, Inc., (NYSE: THG), a leading property and casualty insurance company, announced today that John "Jack" C. Roche, president and chief executive officer, has informed the company's Board of Directors he plans to retire on December 31, 2026, following a distinguished 40-year career in the insurance industry. Richard "Dick" W. Lavey, chief operating officer and president of Hanover Agency Markets, has been appointed by the board as CEO-elect and will work closely with Roche to ensure a successful transition.
John C. Roche
Richard W. Lavey "The Board of Directors is deeply grateful to Jack for his outstanding leadership and the significant impact he's made to The Hanover," said Cynthia L. Egan, chair of the board at The Hanover. "He has driven progress in every dimension of the company, not the least of which is working closely with the board and with Dick to ensure that we have an exceptional CEO to elevate the company to its next level."
Roche, 62, joined The Hanover in 2006 and was appointed president and chief executive officer in 2017. Under his leadership, the company achieved record operating earnings, outstanding stock price appreciation and strengthened its position as a premier property and casualty company in the independent agency channel. In addition to his responsibilities at The Hanover, Roche serves the insurance industry as vice chair of the board of trustees for The Institutes, a member of the board of directors for the American Property Casualty Insurance Association, and as a member of the board of overseers of St. John's University Maurice R. Greenberg School of Risk Management, Insurance and Actuarial Science.
"I will retire at the end of the year with tremendous pride in all our organization has accomplished," Roche said. "The company is in a strong financial position and has the exceptional talent needed to drive our business forward. Having worked closely with Dick for more than two decades, I have complete confidence in his leadership and his ability to guide our company forward. Together, we will ensure a seamless and successful transition."
"Dick is an accomplished executive whose deep experience spans the insurance and technology industries," said Egan. "His impressive contributions have been central in the successful expansion of the company's strategy, shaping The Hanover into a leading partner for independent agents and a top-performing company. From repositioning the firm's personal and core commercial lines growth and profitability to his critical leadership in driving technology advancements, Dick has the insight, strategic vision and passion to lead the company through the next chapter of its remarkable journey."
Lavey, 59, joined The Hanover in 2004 and held a series of executive leadership positions over his 22-year tenure. Currently, Lavey serves as chief operating officer where he directs the strategic transformation of the company's operating model, augmenting the partnership between its business and technology functions. In his role as president of Hanover Agency Markets, Lavey leads the growth and performance of core commercial and personal lines, which combined represent 75% of The Hanover's $7 billion consolidated gross premiums written. Earlier in his tenure, Lavey served as chief marketing officer, chief growth innovation officer, president of personal lines and president of the organization's northeast region, among other key positions.
Prior to The Hanover, Lavey held leadership roles in sales, distribution, marketing and strategy at a number of insurance and technology companies, including The Hartford and The Travelers Insurance Company. He recently served as chairman of the board for the National Council on Compensation Insurance (NCCI). Lavey is a Phi Beta Kappa graduate of The College of Holy Cross and earned his Master of Business Administration degree from Harvard Business School.
"I am honored to lead our organization at such a transformative time in our business. I am energized to continue our momentum to accelerate growth, drive performance and deliver lasting value for our stakeholders," said Lavey.
The company will be available to answer questions at its upcoming earnings call, scheduled for Wednesday, July 29, 2026. The Hanover also plans to share an update on the company's strategy and future outlook at its investor day on September 17, 2026. To learn more, visit The Hanover's investor relations page at investors.hanover.com.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Key Takeaways THG's pricing continues to outpace loss-cost trends, supporting underwriting margins and profitable growth.Specialty and Personal Lines benefit from underwriting discipline, pricing actions and AI-driven efficiency.The Hanover maintains strong capital generation while returning cash through dividends and share repurchases. Shares of The Hanover Insurance Group, Inc. (THG - Free Report) have gained 36.4% in the past year compared with the industry growth of 7.2%. The stock closed at $221.61 on Thursday, trading near its 52-week high of $221.70, reflecting investor confidence.
Disciplined underwriting, effective pricing, specialty insurance expansion and rising investment income are driving the stock. The momentum can continue if pricing remains favorable and claims trends stay under control, though catastrophe losses, competitive pricing pressure and social inflation remain key risks. The company has surpassed earnings estimates in each of the last four quarters, with an average earnings surprise of 28.5%.
Shares of some other insurers, like Arch Capital Group Ltd. (ACGL - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Mercury General Corporation (MCY - Free Report) , have risen 14.2%, 12.9% and 67.1%, respectively, in the past year.
1-Year Price Performance: THG, ACGL, AFG, MCY & Industry
Image Source: Zacks Investment Research
THG Shares Are ExpensiveIts shares are trading at a premium to the industry. Its price-to-book value of 2.17X is higher than the industry average of 1.5X. However, it currently carries a Value Score of A.
Image Source: Zacks Investment Research
THG’s Growth ProjectionThe Zacks Consensus Estimate for 2026 and 2027 revenues implies a year-over-year improvement of 4.7% and 4.8%, respectively.
The estimate for 2026 and 2027 earnings per share indicates a decrease of 3.8% and 0.3%, respectively. However, THG has a Growth Score of B.
Mixed Analyst Sentiment on THGTwo analysts covering the stock have raised earnings estimates for 2026 and 2027, with no downward revision over the past 60 days.
The consensus estimate for 2026 earnings has moved 1.8% north, while 2027 estimates have moved 0.3% south over the past 60 days.
THG’s Favorable Return on CapitalReturn on equity for the trailing-12 months was 21.5%, compared favorably with the industry’s 7.4%. This reflects its efficiency in utilizing shareholders’ funds.
Return on invested capital for the trailing-12 months was 12.5%, better than the industry average of 5.7%, reflecting THG’s efficiency in utilizing funds to generate income.
Key Points to Note for THGThe Hanover's pricing continues to exceed loss-cost trends across both Commercial and Personal Lines, supporting durable underwriting margins despite softening property market conditions. Management expects pricing to remain favorable in 2026, particularly in Commercial and Personal Auto liability, while commercial-line retention remains stable. Net premiums written increased 3.2% in the first quarter of 2026, reflecting the company's disciplined approach to profitable growth. Continued pricing discipline should help sustain underwriting margins even if premium growth remains measured.
Specialty continued to deliver attractive underwriting margins in the first quarter of 2026. Management expects overall Specialty growth to ramp up, with Marine expected to return to upper single-digit growth for the rest of 2026. Robust underwriting performance across Property, Management Liability, Surety, Marine and E&S continues to support earnings. Management remains willing to sacrifice near-term premium growth to preserve long-term profitability.
Personal Lines is benefiting from earned pricing and margin initiatives. As geographic diversification and full-account strategies scale, the segment has room to contribute steadier earnings and support consolidated results through the cycle.
Ongoing investments in artificial intelligence and digital capabilities are enhancing underwriting efficiency, risk selection, claims handling and quoting speed. AI-enabled underwriting, automated risk scoring and claims triage continue to improve operational execution. Meanwhile, net investment income increased 19.6% year over year in the first quarter of 2026, aided by higher reinvestment yields and a high-quality investment portfolio. This has strengthened the company's investment returns and provided an additional source of earnings growth beyond underwriting operations.
THG continues to generate strong capital and remains committed to enhancing shareholder value through a balanced capital deployment strategy, including regular dividend payments and ongoing share repurchases.
ConclusionTHG is positioned to deliver steady earnings growth through premium rate increases, pricing discipline, specialty strength and rising investment income. The company's diversified commercial and personal lines portfolio and ongoing share repurchases provide additional support for earnings and shareholder returns. A VGM Score of A instils confidence.
Coupled with premium expansion, strong underwriting discipline and higher return on capital, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Have you been paying attention to shares of Hanover Insurance Group (THG - Free Report) ? Shares have been on the move with the stock up 18.5% over the past month. The stock hit a new 52-week high of $221.7 in the previous session. Hanover Insurance has gained 21.3% since the start of the year compared to the 5.3% move for the Zacks Finance sector and the 3.2% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has a great 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 $18.36 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 MetricsThough 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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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 C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 11.3X versus its peer group's average of 10.4X. 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 RankWe 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 meets the list of requirements. 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 - 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 13.3% over the past month, and currently trade at a forward P/E of 9.71X and a P/CF of 11.94X.
The Insurance - Property and Casualty industry is in the top 37% 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.
The Zacks Property and Casualty Insurance (P&C) industry is witnessing softer pricing after several years of improvement. However, it is likely to benefit from prudent underwriting, exposure growth and accelerated digitalization. Industry players like The Hanover Insurance Group (THG - Free Report) , Essent Group (ESNT - Free Report) , Mercury General Corporation (MCY - Free Report) , Selective Insurance Group (SIGI - Free Report) and Skyward Specialty Insurance Group (SKWD - Free Report) are poised to grow despite all odds. Given an active catastrophe environment, the policy renewal rate should accelerate. The increasing adoption of technology and the emergence of insurtech help the industry players function smoothly.
The Fed has kept interest rates unchanged till now and has hinted at the possibility of a cut later this year. Though insurers are direct beneficiaries of an improved rate environment, investment income is expected to remain strong, given insurers’ diverse investment portfolio as well as the continued growth of private market investments. Also, an investment portfolio skewed toward fixed-income maturities provides some upside. The imposition of tariffs by President Trump, as well as higher inflation, will have an impact on pricing. Nonetheless, an improvement in surplus and accelerated economic activities set the stage for a better M&A environment. Per Fitch Ratings, personal auto is expected to stay strong, and, coupled with better investment results and lower claims, should fuel insurers' performance.
About the Industry The Zacks Property and Casualty Insurance industry comprises companies that provide commercial and personal property insurance, and casualty insurance products and services. Such insurance helps to safeguard property in case of any natural or man-made disasters. Some industry players also provide liability coverage. The insurance coverage offered also includes automobiles, professional risk, marine, excess casualty, aviation, personal accident, commercial multi-peril, and professional indemnity and surety. Premiums are the primary source of revenues for these insurers. Better pricing and increased exposure drive premiums. These companies invest a portion of premiums to meet their commitments to policyholders. However, rate cuts by the Fed pose downside risk.
4 Trends Shaping the Future of the Property and Casualty Insurance Industry Proper pricing to help navigate claims: Catastrophic events continue to keep insurers under pressure, often prompting rate hikes to sustain claims payouts. However, Marsh’s Global Insurance Market Index reported a 5% decline in global commercial insurance rates in the first quarter of 2026, marking the seventh consecutive quarter of pricing moderation due to stronger competition, favorable claims trends and improved reinsurance conditions. Well-calibrated pricing remains critical, as prudently priced portfolios enhance loss ratios and release capital for more efficient claims servicing. Fitch Ratings highlights strong momentum in personal auto insurance, supported by better investment returns and fewer claims, while S&P Global expects underwriting profits to stabilize as insurers balance growth with steady or slightly reduced rates. Deloitte projects global premiums to grow nearly sixfold to $722 billion by 2030, with China and North America dominating. Swiss Re forecasts 4% premium growth in 2026. Thus, prudent pricing not only drives premium but also a resilient claims ecosystem.
Catastrophe loss induces volatility in underwriting profits: The property and casualty insurance industry is susceptible to catastrophe events, which drag down underwriting profits. According to Aon, natural disasters caused global economic losses of $260 billion last year, while insured losses exceeded $127 billion. Yet the industry generated an estimated net underwriting gain of $63 billion in 2025, significantly higher than $23 billion in 2024, per Verisk. The combined ratio improved to 92.9% from 96.6%, benefiting from relatively lower catastrophe losses. However, Swiss Re projects the combined ratio to deteriorate by 50 basis points to 99% in 2026 as catastrophe pressure normalizes. Insurance Information Institute and Milliman expect personal lines insurers to face higher catastrophe-related losses, which could weigh on underwriting profitability. S&P Global expects underwriting profitability to stabilize as insurers balance growth and pricing discipline.
Merger and acquisitions: Consolidation in the property and casualty industry is likely to continue as players look to diversify their operations into new business lines and geography. Buying businesses along the same lines will also continue as players look to gain market share and grow in their niche areas. With a sturdy capital level, the industry is witnessing a number of mergers, acquisitions and consolidations.
Increased adoption of technology: The industry is witnessing increased use of technologies like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation that expedite business operations and save costs. The industry has also witnessed the emergence of insurtechs or technology-led insurers. The focus of insurtech is mainly on the property and casualty insurance industry. Insurers continue to invest heavily in technology, generative AI in particular, as it is expected to improve basis points, scale and efficiencies. However, the use of technology poses cyber threats.
Zacks Industry Rank Indicates Bright Prospects The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging prospects in the near term. The Zacks Property and Casualty Insurance industry, which is housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #95, which places it in the top 39% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregates. Earnings estimates for 2026 have increased 0.7% year over year.
Before we present a few property and casualty stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms Sector and the S&P 500 The Property and Casualty Insurance industry has underperformed its sector and the Zacks S&P 500 composite in a year. The stocks in this industry have collectively gained 0.3% compared with the sector’s increase of 3.5% and the Zacks S&P 500 composite’s increase of 8.8% in the said time frame.
Price Performance
Current Valuation On the basis of the trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 1.44X compared with the S&P 500’s 8.05X and the sector’s 4.55X.
Over the past five years, the industry has traded as high as 1.74X, as low as 1.18X and at the median of 1.45X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
5 Property and Casualty Insurance Stocks to Bet On Here, we are discussing one Zacks Rank #1 (Strong Buy) stock and four Zacks Rank #2 (Buy) stocks from the P&C Insurance industry.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercury General: Headquartered in Los Angeles, Mercury General is an insurance holding company. It is primarily engaged in writing personal automobile lines of business and provides related property and casualty insurance products. Mercury General has been gaining ground by relying on a set of core organic strengths. The Property and Casualty segment has also held up well, signaling a stable backdrop for the company’s operations. These organic drivers are lifting Mercury General’s top line and shaping the path for continued expansion. Mercury General’s strong liquidity position further supports its growth. It sports a Zacks Rank #1.
The Zacks Consensus Estimate for MCY’s 2026 earnings suggests 44% year-over-year growth. The company delivered a four-quarter average earnings surprise of 738.52%. It has a VGM Score of A.
Price and Consensus: MCY
The Hanover Insurance: Headquartered in Worcester, MA, Hanover Insurance is a U.S. property and casualty insurance holding company that sells through independent agents and brokers. The insurer is poised to grow on disciplined underwriting, effective pricing, specialty insurance expansion and rising investment income. Specialty continues to anchor results through disciplined risk selection and improving mix via workflow and technology upgrades. Personal Lines is benefiting from earned pricing and margin initiatives, and management expects policies in force to grow in 2026. This Zacks Rank #2 company remains committed to returning capital to shareholders through a combination of dividends and share repurchases.
The consensus estimate for 2026 earnings has moved 4% north in the past 60 days. The company has a VGM Score of A.
Price and Consensus: THG
Essent Group: Headquartered in Hamilton, Bermuda, Essent Group boasts a strong position in the U.S. private mortgage insurance market, disciplined underwriting, and a capital-light business model. Conservative risk management, high-quality insured portfolio, and robust capital position support resilient earnings across credit cycles while benefiting from structural demand for mortgage insurance. Essent consistently generates strong free cash flow, enabling shareholder-friendly capital allocation through dividends and share repurchases while maintaining regulatory capital buffers. It carries a Zacks Rank #2.The Zacks Consensus Estimate for ESNT’s 2026 and 2027 earnings suggests 5.1% and 6.2% year-over-year growth, respectively. The company delivered a four-quarter average earnings surprise of 1.57%. The expected long-term earnings growth rate is pegged at 5%.
Price and Consensus: ESNT
Selective Insurance Group: Headquartered in Branchville, NJ, Selective Insurance operates as a P&C insurer through 10 subsidiaries across the United States. Selective Insurance is expected to deliver steady earnings over the next year as renewal pricing remains focused on rate adequacy and investment income continues to rise. SIGI continues to prioritize underwriting profitability over aggressive premium growth and raise renewal rates to address elevated loss-cost trends. It is investing heavily in artificial intelligence and technology capabilities but continues to return capital through dividends and repurchases while keeping flexibility for underwriting and investment opportunities. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for SIGI’s 2026 and 2027 earnings suggests 5.9% and 13.3% year-over-year growth, respectively. The consensus estimate for 2026 and 2027 earnings has moved 0.6% and 0.4% north, respectively, in the past 60 days. SIGI has a VGM Score of A.
Price and Consensus: SIGI
Skyward Specialty Insurance Group: Headquartered in Houston, TX, Skyward Specialty Insurance delivers commercial property and casualty products on a non-admitted (E&S) and admitted basis. A&H momentum, disciplined niche underwriting, expense control and Apollo-led fee income support resilient earnings and sustained returns. Strong momentum in accident & health, credit and surety, global agriculture and specialty programs is helping offset pressure in more competitive property and casualty markets. Several new initiatives are expanding Skyward's addressable market. These include participation in autonomous vehicle insurance programs and the launch of life sciences coverage for businesses with international exposure. It carries a Zacks Rank #2.The Zacks Consensus Estimate for SKWD’s 2026 and 2027 earnings suggests 23.3% and 11.8% year-over-year growth, respectively. The consensus estimate for 2026 and 2027 earnings has moved 5.1% and 2% north, respectively, in the past 60 days. The company delivered a four-quarter average earnings surprise of 16.99%. It has a VGM Score of A.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG), a leading provider of property and casualty insurance for individuals, families and businesses, announced today it has been named to U.S. News & World Report's list of 2026-2027 Best Companies to Work For. This is the fourth consecutive year the company has earned this distinction.
U.S. News & World Report ranked more than 1,300 companies, evaluating factors such as quality of pay and benefits, work life balance and flexibility, job and company stability, physical and psychological comfort, career opportunities and professional development.
"We are proud to be recognized once again by U.S. News & World Report," said John C. Roche, president and chief executive officer at The Hanover. "This recognition reflects the strength of our culture and our continued commitment to creating an environment where employees feel supported, engaged and inspired to do their best work. We believe that when we invest in our people by providing meaningful opportunities, fostering collaboration and encouraging growth, we help them build rewarding careers while also strengthening our ability to serve our customers and communities."
U.S. News & World Report also recognized The Hanover on its subcategory lists for finance and insurance, for companies in the Northeast, and for those that support family caregiving.
To find out more about employment opportunities at The Hanover, please visit www.hanover.com/careers.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) expects to issue its second quarter financial results after the market closes on Tuesday, July 28, 2026. The company expects to webcast a discussion of its results on Wednesday, July 29, at 10:00 a.m. ET, through its website at hanover.com.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now 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 is trading with P/E ratio of 10.86 right now. For comparison, its industry sports an average P/E of 26.49. Over the past year, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. THG has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.23.
Finally, investors will want to 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.29. Over the past 52 weeks, THG's P/CF has been as high as 19.14 and as low as 10.39, with a median of 13.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Hanover Insurance Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THG feels like a great value stock at the moment.
A strong stock as of late has been Hanover Insurance Group (THG - 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 MetricsHanover 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 RankWe 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 - 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.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today announced its board of directors approved a new share repurchase authorization, pursuant to which the company may repurchase up to $700 million of its common stock. At the same time, the company terminated its previous share repurchase program, which had a remaining repurchase authorization of approximately $63 million.
"Our new repurchase authorization demonstrates our confidence in the durability of our earnings and conviction in the path ahead," said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover. "We maintain a disciplined but flexible approach to capital management, balancing investment in the business with meaningful capital returns to shareholders. We remain focused on deploying capital in ways that enhance long–term shareholder value."
Under the new $700 million share repurchase authorization, the company may repurchase its common stock from time to time, in amounts, at prices, and at times the company deems appropriate, subject to market conditions and other considerations. The company's stock purchases may be executed using open market repurchases, privately negotiated transactions, accelerated repurchase programs, or other transactions. The company may establish trading plans under the Securities and Exchange Commission's rule 10b5-1 that will provide additional flexibility as it buys back its stock.
Forward-Looking Statements
Statements regarding capital management flexibility, including future share repurchases, future profitability, and durability of earnings constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any such forward-looking statements are not guarantees of future performance. Investors are directed to consider the risks and uncertainties in the company's business that may cause actual results to differ, including those risks which are discussed in readily available documents, such as the company's annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other documents filed by The Hanover with the Securities and Exchange Commission and which are also available on hanover.com under "Investors."
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today announced the expansion of its motorcycle and off-road vehicle (ORV) insurance products, further broadening availability across additional states and reinforcing the company's commitment to delivering broad, total account solutions for agents and customers.
The Hanover has expanded its motorcycle insurance offering into Maryland and Virginia. Its ORV offering is now also available in Maine, New Hampshire, Ohio and Pennsylvania. Key coverage features include:
An agreed value option for motorcycles, helping ensure owners are protected for the full insured value of their bikes Enhanced physical damage coverage for both motorcycles and ORVs that protects what riders invest in, including $1,500 in custom equipment coverage and $1,000 for rider safety apparel Distinctive Hanover Platinum waiver of deductible feature, reinforcing the benefits of consolidating coverage under one carrier when it matters most "These offerings further advance our total account strategy that helps protect our customers' homes, vehicles and lifestyles," said Daniel C. Halsey, president, personal lines at The Hanover. "Recreational lines help our agents deliver a more holistic insurance experience by placing all coverages with a single carrier, improving the customer experience, increasing retention and streamlining the process for both customers and agents."
The Hanover's motorcycle and ORV products are the latest in a series of investments the company has made to deliver a total account experience for its customers through a range of coverage options including umbrella, cyber and collector car, an offering introduced in 2025 through a partnership with Hagerty. Motorcycle and ORV are available to be added to any Hanover auto policy. Motorcycle coverage is available in Connecticut, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New York, Ohio, Pennsylvania, Tennessee, Virginia and Wisconsin. ORV coverage is available in Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, Ohio, Pennsylvania, Virginia and Wisconsin, with plans to expand to additional states later this year.
For more information about The Hanover's motorcycle and ORV offerings, please visit hanover.com.
ABOUT THE HANOVER
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, the company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
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 MetricsThough 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 RankWe 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.
Key Takeaways Hanover expanded motorcycle coverage into Maryland and Virginia and ORV into four more states.THG added agreed value coverage, custom equipment and rider apparel protection options.Hanover aims to boost retention and cross-selling through bundled specialty insurance offerings. The Hanover Insurance Group (THG - Free Report) is expanding its motorcycle and off-road vehicle (ORV) insurance offerings across multiple U.S. states as part of its broader strategy to strengthen its total account insurance model. The expansion increases availability of motorcycle coverage into Maryland and Virginia, while ORV coverage has been extended into Maine, New Hampshire, Ohio and Pennsylvania.
Hanover is also enhancing its value proposition through features such as agreed value coverage for motorcycles, expanded protection of $1500 in custom equipment and $1000 in rider apparel, and deductible waivers under its Platinum offering. These differentiated coverage features could help the company attract higher-value customers while strengthening agent relationships in niche recreational insurance markets.
The move highlights Hanover’s focus on deepening customer relationships by offering a wider range of insurance products through a single carrier. By bundling motorcycle, ORV, auto, home and specialty coverages together, the company aims to improve customer retention, increase cross-selling opportunities and simplify policy management for both agents and customers.
The expansion builds on Hanover’s broader investment in specialty personal lines products, including its cyber collector car partnership with Hagerty, launched in 2025. Continued expansion into recreational lines and lifestyle-oriented insurance categories could support premium growth, improve policy retention and strengthen Hanover’s competitive positioning in the personal lines market over time.
How Are Other Auto Insurers Faring?Other Auto Insurers like The Progressive Corporation (PGR - Free Report) and The Allstate Corporation (ALL - Free Report) are also expanding their motorcycle insurance presence and strengthening bundled recreational coverage offerings across the United States.
Progressive is expanding its presence in motorcycle, RV and recreational vehicle insurance as insurers increasingly target lifestyle-oriented personal lines markets. PGR continues broadening its motorcycle and RV coverage offerings across the United States with features such as accessory protection, safety apparel coverage and multi-policy bundling benefits aimed at improving customer retention and cross-selling opportunities
Allstate is also strengthening its motorcycle insurance offerings through broader coverage options, bundled policies and rider-focused protection features across multiple U.S. states. ALL continues expanding customizable motorcycle coverage with accessory protection, roadside assistance, rider safety packages and multi-policy bundling benefits to improve customer retention and deepen relationships across personal insurance lines.
THG’s Price Performance, Valuation & EstimatesShares of THG have gained 17.1% against the industry’s decline of 5.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, THG trades at a forward price-to-earnings ratio of 10.39X, down from the industry average of 26.13X. THG carries a Value Score A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimates for 2026 and 2027 earnings moved 10.4% and 3.5% north, respectively, in the last 30 days.
The consensus estimates for THG’s 2026 and 2027 revenues indicate a year-over-year increase.
The consensus estimate for earnings per share is currently pegged at $18.45 for 2026, indicating a 3.3% year-over-year decline.
Hanover stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hanover Insurance Group has successfully engineered margin expansion by pairing steady revenue growth with a disciplined underwriting pivot reducing losses. Trading at a significant 20% P/E discount to the sector median, THG offers a premier entry point with a forward P/E of just 9.38 and a staggering 0.15 PEG ratio. A record-breaking 20.3% Operating ROE underscores management's disciplined underwriting roadmap and its aggressive commitment to shareholder value.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
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 an A grade for Value. The stock is trading with P/E ratio of 10.86 right now. For comparison, its industry sports an average P/E of 26.05. Over the past 52 weeks, THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.25.
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 1.02. This compares to its industry's average P/S of 1.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Hanover Insurance Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THG feels like a great value stock at the moment.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 22:
Universal Insurance Holdings, Inc. (UVE - Free Report) : This insurance holding company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 18.8% over the last 60 days.
Universal has a price-to-earnings ratio (P/E) of 8.40 compared with 12.70 for the industry. The company possesses a Value Scoreof A.
The Hanover Insurance Group, Inc. (THG - Free Report) : This insurance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 9.6% over the last 60 days.
The Hanover Insurance has a price-to-earnings ratio (P/E) of 10.55 compared with 12.70 for the industry. The company possesses a Value Score of A.
Ategrity Specialty Insurance Company Holdings (ASIC - Free Report) : This insurance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 9.6% over the last 60 days.
Ategrity Specialty Insurance Company has a price-to-earnings ratio (P/E) of 10.67 compared with 10.70 for the industry. The company possesses a Value Score of B.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are three stocks with buy rank and strong income characteristics for investors to consider today, May 22:
Universal Insurance Holdings, Inc. (UVE - Free Report) : This insurance holding company witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.8% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.6%, compared with the industry average of 0.8%.
The Hanover Insurance Group, Inc. (THG - Free Report) : This insurance company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.6% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 2%, compared with the industry average of 0.8%.
Texas Instruments Incorporated (TXN - Free Report) : This semiconductor company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.5% in the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.7%, compared with the industry average of 0.0%.
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens.
Hanover Insurance Group (THG - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Hanover Insurance is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Hanover Insurance imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Hanover InsuranceThis insurance company is expected to earn $18.46 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Hanover Insurance. Over the past three months, the Zacks Consensus Estimate for the company has increased 9.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Hanover Insurance to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
It has been about a month since the last earnings report for Hanover Insurance Group (THG - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hanover Insurance due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Hanover Insurance Q1 Earnings Top Estimates on Lower Cat Losses
The Hanover Insurance posted first-quarter 2026 operating income of $5.25 per share, which rose 35.7% year over year and beat the Zacks Consensus Estimate of $4.14 by 26.8%.
Total revenues rose 6.1% year over year to $1.7 billion but missed the consensus mark of $1.72 billion by 1.2%. Results reflected firm pricing and improved underlying loss trends, helping drive a record operating return on equity of 20.3%.
THG Delivers Better Combined Ratio Despite Cat Losses
Underwriting profitability strengthened in the quarter, with the consolidated combined ratio improving to 91.7% from 94.1% a year ago.
Catastrophe losses were $98.9 million, adding 6.3 points to the combined ratio.
Excluding catastrophes, the combined ratio improved to 85.4%, supported by a 2.3-point year-over-year decline in the loss and loss adjustment expense ratio. The current accident year combined ratio, excluding catastrophes, was 87.0%, pointing to better core underwriting performance.
Net premiums written increased to $1,559.7 million from $1,510.8 million, aided by renewal pricing and disciplined growth across businesses.
The Hanover’s Core Commercial Segment Benefits From Rate Action
Core Commercial generated net premiums written of $630.4 million, up 4.3% from the prior-year quarter. Renewal price increases were 8.6%, while rate increases were 7.5%, reflecting continued emphasis on adequate pricing and targeted appetite across small commercial and middle-market accounts.
Profitability improved meaningfully as underwriting actions flowed through. The segment’s combined ratio was 96.6% versus 103.4% a year ago, with the total loss and LAE ratio improving to 63.9% from 70.0%. Prior-year favorable development, excluding catastrophes, was 0.3 points, and GAAP underwriting profit swung to $17.8 million from a loss of $20.0 million in the prior-year period.
Specialty net premiums written increased 2.3% year over year to $366.7 million. Renewal price increases were 4.6% and rate increases were 2.4%, indicating steady momentum while maintaining underwriting discipline across the segment’s marine, professional, and other specialty offerings.
The segment produced a combined ratio of 84.2%, an improvement from 87.7% in the prior-year quarter. A lower total loss and loss adjustment expense ratio of 47.8% (down from 50.7%) helped lift GAAP underwriting profit to $56.1 million from $41.2 million, while the expense ratio was 36.4% compared with 37.0% a year earlier.
The Hanover’s Personal Lines Segment Mixed as Pricing Stays Firm
Personal Lines net premiums written rose 2.7% year over year to $562.6 million. Renewal price increases were 8.4% and rate increases were 4.3%, underscoring continued pricing traction as the company works to improve profitability in auto and homeowners lines.
Even with that pricing support, results were more mixed. The segment’s combined ratio was 91.5% compared with 89.7% a year earlier, as catastrophe losses remained elevated for the book, with a current-year catastrophe loss ratio of 12.4% versus 5.8% in the prior-year quarter. The total loss and LAE ratio was 65.8% compared with 64.4% a year ago, and GAAP underwriting profit totaled $52.3 million, down from $61.7 million.
THG Balance Sheet Advances With Book Value Increase
Hanover ended the quarter with book value per share of $101.86, up 1% from Dec. 31, 2025.
The investment portfolio expanded, with total investments rising 4% to $10.80 billion as of March 31, 2026, including fixed maturities of $9.98 billion. The company also reduced leverage, with short-term debt falling to $50.1 million from $375.0 million and long-term debt declining to $793.7 million from $843.3 million.
As of March 31, 2026, the operating insurance company's statutory capital and surplus were $3.54 billion, up from $3.34 billion as of Dec. 31, 2025.
Capital Deployment
From the start of the year till April 28, 2026, THG repurchased about 0.6 million shares for $101 million, of which about 0.5 million were repurchased during the first quarter of 2026 for $87 million. The company has about $72 million of remaining capacity under its existing share repurchase program.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 6.99% due to these changes.
VGM ScoresCurrently, Hanover Insurance has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hanover Insurance has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
, /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) announced today its board of directors has declared a quarterly dividend of $0.95 per share on the issued and outstanding common stock of the company, payable June 26, 2026, to shareholders of record at the close of business on June 12, 2026.
Forward-Looking Statements
Statements regarding quarterly or future dividends, whether regular or special, payable to the company's shareholders, which may be subject to future increases, decreases, or elimination, as determined by The Hanover's board of directors, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any such forward-looking statements are not guarantees of future performance, including but not limited to, growth, earnings improvement, returns, future dividend payments, or the amount of such payments. Investors are directed to consider the risks and uncertainties in the company's business that may cause actual results to differ and/or affect the board's decision to declare dividends in the future, including those risks which are discussed in readily available documents, such as the company's annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other documents filed by The Hanover with the Securities and Exchange Commission and which are also available on hanover.com under "Investors."
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
The Hanover's new survey highlights uncertainty around homeowners insurance coverage
, /PRNewswire/ -- 90% of homeowners¹ expressed concern about protecting their homes and personal property, but many don't know what their homeowners insurance protection covers, according to a new survey conducted by The Harris Poll on behalf of The Hanover Insurance Group, Inc. (NYSE: THG).
The Hanover's 2026 Home Report: The Coverage Confidence Gap shows that many homeowners buy insurance protection without checking to see what their policy covers. For example, many homeowners haven't verified that the following valued protections are part of their standard policy or require an additional purchase:
Identity fraud protection (helps cover costs to restore identity after fraud or identity theft) — 46% have not verified Service line coverage (repair or replacement of underground utility lines on a property, such as water or sewer lines) — 41% have not verified Water backup coverage (for damage to property caused by backed-up drains or sump pump overflow, not to be confused with flood insurance) — 38% have not verified Personal property replacement cost (replaces items with new equivalents at current prices) — 24% have not verified These coverages are not always automatically included in insurance quotes and can vary by carrier or policy tier.
The findings come at a time when homeowners report broad concern about protecting their homes and personal property. Homeowners cite regular repair costs (45%), damage from severe weather or natural disasters (42%), and non‑weather‑related events such as water leaks and fires (32%) as top concerns.
At the same time, the survey shows that homeowners prioritize comprehensive protection when choosing an insurance carrier and evaluating trade-offs between protection and price:
81% say comprehensive protection, with no coverage gaps or surprises, is absolutely essential or very important 74% say they would prefer a policy with broader protection, even if it costs more, over a homeowners insurance policy that provides fewer protections but costs less Together, the findings point to a gap between homeowners' preference for comprehensive protection and their confidence in what their policies provide.
"For many people, a home is their most important asset. Homeowners want confidence their insurance will protect them when it matters most, yet many aren't fully certain what their policies include," said Daniel C. Halsey, president of personal lines at The Hanover. "While price will always be a factor, choosing coverage based on cost alone can leave people under-protected and facing higher out-of-pocket expenses after a loss. Talking with an independent insurance agent can help homeowners understand their coverage, identify potential gaps and make more confident decisions about protecting their homes and financial well‑being."
To read the full 2026 Home Report: The Coverage Confidence Gap and learn more about home protection, please visit hanover.com.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
CONTACTS:
¹ For the purposes of this report, homeowners refer to those individuals who own a house.
Survey method
This survey was conducted online within the United States by The Harris Poll on behalf of The Hanover from March 5-9, 2026 among 1,173 adults ages 18 and older who own a house. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 3.6 percentage points using a 95% confidence level.
For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
This material is provided for informational purposes only and does not provide any coverage or guarantee prevention of loss. All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates ("The Hanover"). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage. (For more information visit www.hanover.com.)
Key Takeaways THG maintains pricing above loss trends, helping support underwriting margins across segments.The Hanover expects Specialty growth to accelerate, led by Marine and technology investments.THG repurchased about $101M of stock as net investment income climbed 19.6% in Q1. Shares of The Hanover Insurance Group, Inc. (THG - Free Report) have gained 8.5% in the past year against the industry decline of 4.8%, while underperforming the Finance sector and the Zacks S&P 500 composite’s growth of 13.6% and 31.6%, respectively.
Disciplined underwriting, effective Pricing, specialty insurance expansion and rising investment income are likely driving the stock. The momentum can continue if pricing remains favorable and claims trends stay under control, though catastrophe losses, competitive pricing pressure and social inflation remain key risks.
Image Source: Zacks Investment Research
Some other insurers, like American Financial Group, Inc. (AFG - Free Report) and Mercury General Corporation (MCY - Free Report) , have risen 4.5% and 51.3%, respectively, in the past year. Meanwhile, shares of Arch Capital Group Ltd. (ACGL - Free Report) have lost 6.6% in the past year.
THG Shares Are ExpensiveIts shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.83X is higher than the industry average of 1.35X.
Image Source: Zacks Investment Research
THG’s Growth ProjectionThe Zacks Consensus Estimate for 2026 and 2027 revenues implies a year-over-year improvement of 4.7% and 4.8%, respectively.
The estimate for 2026 and 2027 earnings per share indicates a decrease of 3.8% and 0.3%, respectively.
Analysts' Opinion on THG Moves SouthThe consensus estimate for 2026 and 2027 earnings has moved 0.5% and 0.1% south, respectively, in the past 30 days.
THG’s Favorable Return on CapitalReturn on equity (ROE) for the trailing-12 months was 17.8%, compared favorably with the industry’s 6%. This reflects its efficiency in utilizing shareholders’ funds.
Return on invested capital in the trailing-12 months was 12.5%, better than the industry average of 5.7%, reflecting THG’s efficiency in utilizing funds to generate income.
THG’s Average Target Price Suggests UpsideBased on short-term price targets offered by eight analysts, the Zacks average price target is $206.38 per share. The average suggests a potential 10.8% upside from the last closing price.
Key Points to Note for THGThe Hanover’s pricing remains above loss trends across commercial and personal lines, supporting durable underwriting margins even as property markets soften. Management continues to expect pricing to rise in 2026 in commercial and personal auto liability, and retention has remained steady in commercial lines. With balanced net premiums written growth of 3.2% in first-quarter 2026, pricing discipline should keep underlying margins resilient even if growth stays measured.
Specialty continued to deliver attractive underwriting margins in first-quarter 2026. Management expects overall Specialty growth to ramp up, with Marine expected to return to upper single-digit growth for the rest of 2026. Technology investments, including AI-enabled triage and workflow modernization, are intended to improve speed to answer and mix quality, supporting Specialty’s role as a stabilizer as property competition evolves.
Personal Lines is benefiting from earned pricing and margin initiatives. As geographic diversification and full-account strategies scale, the segment has room to contribute steadier earnings and support consolidated results through the cycle.
Management continues to reinvest at higher yields than maturities, supporting growing investment. This has strengthened the company's investment portfolio returns and provided an additional source of earnings growth beyond underwriting operations.
THG remains committed to returning capital to shareholders through a combination of dividends and share repurchases.
ConclusionTHG is positioned to deliver steady earnings growth through premium rate increases, sustained pricing above trend, specialty strength and rising investment income. The company's diversified commercial and personal lines portfolio and ongoing share repurchases provide additional support for earnings and shareholder returns.
Coupled with premium expansion, strong underwriting discipline and higher return on capital, the time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer. You can see the complete list of today’s Zacks #1 Rank stocks here.
The new Quant Growth & Income Portfolio targets both capital appreciation and dividend yield. QG&I's diversified holdings include Exxon (XOM), EPR Properties (EPR), and Hanover Insurance Group (THG), each selected for strong value, growth, profitability, momentum, and EPS revisions.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 9:
The Hanover Insurance Group, Inc. (THG - Free Report) : This insurance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 9.5% over the last 60 days.
The Hanover Insurance Group has a price-to-earnings ratio (P/E) of 10.52 compared with 23.13 for the S&P. The company possesses a Value Scoreof A.
DaVita Inc. (DVA - Free Report) : This kidney dialysis company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 6.4% over the last 60 days.
DaVita has a price-to-earnings ratio (P/E) of 12.75 compared with 25.80 for the industry. The company possesses a Value Score of A.
Douglas Dynamics, Inc. (PLOW - Free Report) : This commercial vehicle solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 15.4% over the last 60 days.
Douglas Dynamics has a price-to-earnings ratio (P/E) of 15.17 compared with 23.13 for the S&P. The company possesses a Value Score of B.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 9:
Douglas Dynamics, Inc. (PLOW - Free Report) : This commercial vehicle solutions company witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.4% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 2.7%, compared with the industry average of 0.0%.
Texas Instruments Incorporated (TXN - Free Report) : This semiconductor company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 20.6% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 2.0%, compared with the industry average of 0.2%.
The Hanover Insurance Group, Inc. (THG - Free Report) : This insurance company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.5% in the last 60 days.
This Zacks Rank #1 company has a dividend yield of 2.0%, compared with the industry average of 0.8%.
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Douglas Dynamics, Inc. (PLOW - Free Report) : This commercial vehicle solutions company has seen the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 days.
Texas Instruments Incorporated (TXN - Free Report) : This semiconductor company has seen the Zacks Consensus Estimate for its current year earnings increasing 20.6% over the last 60 days.
The Hanover Insurance Group, Inc. (THG - Free Report) : This insurance company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.5% over the last 60 days.
Unisys Corporation (UIS - Free Report) : This technology services company has seen the Zacks Consensus Estimate for its current year earnings increasing 14.8% over the last 60 days.
EZCORP, Inc. (EZPW - Free Report) : This pawn services company has seen the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is The Hanover Insurance Group (THG - Free Report) . THG is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.86, while its industry has an average P/E of 26.25. 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. THG has a P/S ratio of 1. This compares to its industry's average P/S of 1.19.
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.
