Hanover Insurance (THG) Loses 8.8% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Hanover Insurance Group (THG) has experienced significant selling pressure, resulting in an 8.8% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if THG is oversold, with a current RSI reading of 24.88, suggesting that the stock is in oversold territory and may soon experience a trend reversal [2][5]. - The RSI serves as a momentum oscillator that measures price movement speed and change, oscillating between zero and 100, with readings below 30 indicating oversold conditions [2][3]. Group 2: Fundamental Indicators - Analysts covering THG have shown a strong consensus in raising earnings estimates for the current year, resulting in a 0% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - THG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].