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EverQuote, Inc. (EVER) Hits Fresh High: Is There Still Room to Run?

Zacks Equity Research
·3 min read

Shares of EverQuote, Inc. (EVER) have been strong performers lately, with the stock up 74.8% over the past month. The stock hit a new 52-week high of $53.87 in the previous session. EverQuote, Inc. has gained 41.1% since the start of the year compared to the -26.4% move for the Zacks Finance sector and the -30.1% return for the Zacks Insurance - Multi line industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 4, 2020, EverQuote, Inc. reported EPS of $-0.05 versus consensus estimate of $-0.06 while it beat the consensus revenue estimate by 5.42%.

For the current fiscal year, EverQuote, Inc. is expected to post earnings of $-0.2 per share on $326 million in revenues. This represents a 28.57% change in EPS on a 31.02% change in revenues. For the next fiscal year, the company is expected to earn $0.01 per share on $394.1 million in revenues. This represents a year-over-year change of 103% and 20.89%, respectively.

Valuation Metrics

EverQuote, Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

EverQuote, Inc. has a Value Score of F. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.

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, EverQuote, Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

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 EverQuote, Inc. passes the test. Thus, it seems as though EverQuote, Inc. shares could still be poised for more gains ahead.

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