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

Company Performance - United Fire Group (UFCS) has seen a stock increase of 19.1% over the past month, reaching a new 52-week high of $36.7 [1] - Year-to-date, the stock has gained 27.5%, outperforming the Zacks Finance sector's 14.1% gain and the Zacks Insurance - Property and Casualty industry's 8.3% return [1] Earnings and Revenue - United Fire has consistently beaten earnings estimates, reporting an EPS of $1.5 against a consensus estimate of $0.69 in its last earnings report [2] - For the current fiscal year, the company is expected to post earnings of $3.93 per share on revenues of $1.38 billion, reflecting a 53.52% increase in EPS and a 10.04% increase in revenues [3] - For the next fiscal year, earnings are projected to decrease to $3.55 per share, while revenues are expected to rise to $1.52 billion, indicating a year-over-year change of -9.67% in EPS and 10.17% in revenues [3] Valuation Metrics - United Fire's stock trades at 9.2X current fiscal year EPS estimates, below the peer industry average of 10.9X, and at 11.9X trailing cash flow compared to the peer group's average of 12.8X, positioning it favorably for value investors [7] - The company has a Value Score of A, a Growth Score of D, and a Momentum Score of A, resulting in a VGM Score of B [6] Zacks Rank - United Fire holds a Zacks Rank of 1 (Strong Buy), supported by a solid earnings estimate revision trend [8] - The stock meets the criteria for selection, indicating potential for further gains in the near term [9] Industry Comparison - Universal Insurance Holdings Inc (UVE), a peer in the industry, also has a Zacks Rank of 1 (Strong Buy) and strong earnings expectations, with projected earnings of $3.34 per share on revenues of $1.57 billion for the current fiscal year [10][11] - The Insurance - Property and Casualty industry is performing well, ranking in the top 13% of all industries, suggesting favorable conditions for both UFCS and UVE [12]