Have you been paying attention to shares of United Fire Group (UFCS)? Shares have been on the move with the stock up 23.2% over the past month. The stock hit a new 52-week high of $48.91 in the previous session. United Fire has gained 32.7% since the start of the year compared to the 0.3% gain for the Zacks Finance sector and the -4.6% 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 May 5, 2026, United Fire reported EPS of $1.16 versus consensus estimate of $0.87.
For the current fiscal year, United Fire is expected to post earnings of $4.88 per share on $1.53 in revenues. This represents a 6.09% change in EPS on a 10.54% change in revenues. For the next fiscal year, the company is expected to earn $4.95 per share on $1.68 in revenues. This represents a year-over-year change of 1.43% and 9.59%, respectively.
Valuation Metrics
While United Fire has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
United Fire has a Value Score of A. The stock's Growth and Momentum Scores are D and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.6X. On a trailing cash flow basis, the stock currently trades at 9.3X versus its peer group's average of 9.7X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making United Fire an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, United Fire 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 United Fire fits the bill. Thus, it seems as though United Fire shares could have a bit more room to run in the near term.
How Does UFCS Stack Up to the Competition?
Shares of UFCS 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 The Hanover Insurance Group, Inc. (THG). THG has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. The Hanover Insurance Group, Inc. beat our consensus estimate by 26.81%, and for the current fiscal year, THG is expected to post earnings of $18.45 per share on revenue of $6.95 billion.
Shares of The Hanover Insurance Group, Inc. have gained 7% over the past month, and currently trade at a forward P/E of 10.25X and a P/CF of 9.64X.
The Insurance - Property and Casualty industry is in the top 38% of all the industries we have in our universe, so it looks like there are some nice tailwinds for UFCS and THG, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).