Should Value Investors Buy The Hanover Insurance Group (THG) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is The Hanover Insurance Group (THG). THG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.96, while its industry has an average P/E of 22.22. THG's Forward P/E has been as high as 15.57 and as low as 10.95, with a median of 13.20, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THG has a P/S ratio of 0.81. This compares to its industry's average P/S of 0.87.
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 at as one of the market's strongest value stocks.
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The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report
