Hanover Insurance (THG) stock poised for growth with solid fundamentals and long-term strategy

From Nasdaq: 2024-07-05 13:05:00

The Hanover Insurance Group (THG) is poised for growth with strong market presence, solid capital position, and steady retention.
Shares have gained 3.4% year to date, underperforming the industry’s 13.5% increase.
The insurer aims for a long-term return on equity of 14% by 2026 with better rates and cost management.

THG’s 2024 earnings estimate is $10.47/share, a 571.2% increase, with revenues up 4.5% to $6.3 billion.
Growth strategy focuses on small to mid-sized clients, targeting a 10% CAGR and upper single digit growth by 2024.
The company’s digitalization efforts enhance front-end capabilities to stay competitive in the industry.

Hanover Insurance boasts a 17-year history of dividend hikes with a 2.7% yield, attracting yield-seeking investors.
Potential risks include exposure to catastrophic events affecting underwriting profitability.
Consider top-ranked alternatives like HCI, PLMR, and PRA for strong growth prospects in the insurance sector.



Read more at Nasdaq: Here’s Why You Should Retain Hanover Insurance (THG) Stock