On Friday, Hanover Insurance Grp hit an important technical milestone, with its Relative Strength (RS) Rating entering into the 80-plus percentile with an upgrade to 82, up from 76 the day before.
This unique rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matches up against the rest of the market.
Over 100 years of market history reveals that the market's biggest winners tend to have an RS Rating north of 80 as they begin their biggest runs.
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Hanover Insurance Grp broke out earlier, but has fallen back below the prior 166.13 entry from a flat base. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to take shape. Also keep in mind that the most recent consolidation is a later-stage base, and those involve more risk.
Earnings growth slowed in the most recent report from 1,505% to 68%. But revenue moved higher, from 3% to 4%.
Hanover Insurance Grp earns the No. 14 rank among its peers in the Insurance-Property/Casualty/Title industry group. Skyward Specialty Ins, Kinsale Capital Group and Goosehead Insurance Cl A are among the top 5 highly rated stocks within the group.
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