Shares of Horace Mann (HMN) have been strong performers lately, with the stock up 5.1% over the past month. The stock hit a new 52-week high of $48.33 in the previous session. Horace Mann has gained 19.2% since the start of the year compared to the 13.2% gain for the Zacks Finance sector and the 3.9% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 4, 2025, Horace Mann reported EPS of $1.36 versus consensus estimate of $1.05.
For the current fiscal year, Horace Mann is expected to post earnings of $4.3 per share on $1.7 in revenues. This represents a 35.53% change in EPS on a 6.32% change in revenues. For the next fiscal year, the company is expected to earn $4.57 per share on $1.81 in revenues. This represents a year-over-year change of 6.03% and 6.6%, respectively.
Valuation Metrics
While Horace Mann 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Horace Mann has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 10.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.3X. On a trailing cash flow basis, the stock currently trades at 12X versus its peer group's average of 11.7X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Horace Mann an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Horace Mann currently has a Zacks Rank of #2 (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 Horace Mann meets the list of requirements. Thus, it seems as though Horace Mann shares could still be poised for more gains ahead.
How Does HMN Stack Up to the Competition?
Shares of HMN 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 Hamilton Insurance Group, Ltd. (HG). HG has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Hamilton Insurance Group, Ltd. beat our consensus estimate by 85.92%, and for the current fiscal year, HG is expected to post earnings of $3.60 per share on revenue of $2.76 billion.
Shares of Hamilton Insurance Group, Ltd. have gained 5.5% over the past month, and currently trade at a forward P/E of 7.74X and a P/CF of 7.23X.
The Insurance - Multi line industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HMN and HG, even beyond their own solid fundamental situation.
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Horace Mann Educators Corporation (HMN): Free Stock Analysis Report Hamilton Insurance Group, Ltd. (HG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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