Here's Why Hold Is an Apt Strategy for EverQuote (EVER) Now
EverQuote, Inc. EVER has been gaining momentum on the back of revenue growth within the health direct-to-consumer agency, higher quote request volume and innovating advertiser products and a robust capital position.
Growth Projections
The Zacks Consensus Estimate for EverQuote’s 2024 earnings implies a year-over-year increase of 39.7%, driven by 17.4% higher revenues of $402.36 million.
Earnings Surprise History
EverQuote has a decent earnings surprise history. Its bottom line beat estimates in each of the last four quarters, the average being 46.82%.
Zacks Rank & Price Performance
EVER currently carries a Zacks Rank #3 (Hold). In the past one year, the stock has lost 30.2% compared with the industry’s decrease of 2.1%.
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Business Tailwinds
EverQuote's top line has been increasing over the years owing to the solid performance of automotive and other insurance marketplace verticals.
EVER also remains focused on rapidly expanding into new verticals. Growth in overall consumer quote requests should benefit EverQuote as it reflects the insurer’s success in generating consumer traffic and the potential to increase the share of insurance-shopping consumers.
Variable marketing margin (VMM) is likely to gain from strong revenue growth within the health direct-to-consumer agency during the annual health open enrollment period. This is expected to drive an improvement in VMM operating point for the business.
Increasing consumer traffic, higher quote request volume and innovating advertiser products and services will continue to boost revenues.
EverQuote boasts a debt-free balance sheet with cash balance improving over the last three years. The insurer aims to meet any future debt service obligations with the existing cash and cash equivalents and cash flows from operations, which are expected to be sufficient to fund operating expenses and capital expenditure requirements for at least the next 12 months, without considering liquidity available from the revolving line of credit.
EVER also has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company.
Stocks to Consider
Some better-ranked stocks from the insurance industry are MGIC Investment Corporation MTG, CNO Financial Group, Inc. CNO and Root, Inc. ROOT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MGIC Investment has a solid track record of beating earnings estimates in each of the last four quarters, the average being 30.18%.
The Zacks Consensus Estimate for 2023 and 2024 has moved 3.3% and 0.4% north, respectively, in the past 60 days, reflecting analysts’ optimism. In the past year, the insurer has gained 19.8%.
CNO Financial’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 15.35%.
The Zacks Consensus Estimate for CNO’s 2023 and 2024 earnings implies 19.3% and 7.4% year-over-year growth, respectively. In the past year, the insurer has rallied 32.8%.
Root beat estimates in each of the last four quarters, the average being 18.24%. In the past year, the insurer has lost 43.4%.
The Zacks Consensus Estimate for ROOT’s 2023 and 2024 earnings per share indicates a year-over-year increase of 43.8% and 42.5%, respectively.
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MGIC Investment Corporation (MTG) : Free Stock Analysis Report
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
EverQuote, Inc. (EVER) : Free Stock Analysis Report
Root, Inc. (ROOT) : Free Stock Analysis Report
