Yahoo Finance 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company to watch right now is The Hanover Insurance Group (THG). THG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.40, while its industry has an average P/E of 23.36. THG's Forward P/E has been as high as 15.57 and as low as 10.95, with a median of 13.06, 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 0.84. This compares to its industry's average P/S of 0.9.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at The Travelers Companies (TRV). TRV is a # 2 (Buy) stock with a Value score of A.
Shares of The Travelers Companies currently holds a Forward P/E ratio of 11.75, and its PEG ratio is 1.10. In comparison, its industry sports average P/E and PEG ratios of 23.36 and 1.94.
Over the last 12 months, TRV's P/E has been as high as 14.22, as low as 10.46, with a median of 12.41, and its PEG ratio has been as high as 4.49, as low as 1.05, with a median of 2.64.
Additionally, The Travelers Companies has a P/B ratio of 1.87 while its industry's price-to-book ratio sits at 1.46. For TRV, this valuation metric has been as high as 2.24, as low as 1.50, with a median of 1.81 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Hanover Insurance Group and The Travelers Companies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THG and TRV feels like a great value stock at the moment.
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The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
