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

Have you been paying attention to shares of United Fire Group (UFCS)? Shares have been on the move with the stock up 6.4% over the past month. The stock hit a new 52-week high of $50.35 in the previous session. United Fire has gained 38.2% since the start of the year compared to the 3.7% move for the Zacks Finance sector and the -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, 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 $4.69 per share on $1.53 in revenues. This represents a 1.96% change in EPS on a 10.54% change in revenues. For the next fiscal year, the company is expected to earn $4.9 per share on $1.68 in revenues. This represents a year-over-year change of 4.48% and 9.59%, respectively.Valuation MetricsWhile United Fire has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.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.United Fire 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 10.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.4X. On a trailing cash flow basis, the stock currently trades at 9.7X versus its peer group's average of 10.3X. 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 RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, United Fire currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.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 meets the list of requirements. Thus, it seems as though United Fire shares could have potential in the weeks and months to come.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 #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.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 $18.36 per share on revenue of $6.95 billion.Shares of The Hanover Insurance Group, Inc. have gained 6% over the past month, and currently trade at a forward P/E of 11.31X and a P/CF of 10.58X.The Insurance - Property and Casualty industry is in the top 40% 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks