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HCI Group (HCI) Stock Up 104% in a Year: More Upside Left?
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Shares of HCI Group (HCI - Free Report) have rallied 103.9% in a year compared with the industry's increase of 35.5% and the Finance sector’s rally of 40.2%. The Zacks S&P 500 composite has rallied 35.7% in the said time frame. With a market capitalization of $0.8 billion, average volume of shares traded in the last three months was 0.1 million.
Well performing Homeowners Choice and TypTap coupled with conservative reserving practice should continue to drive HCI Group. The company has a decent track record of beating earnings estimates in three of the last four reported quarters and missing in one, with the average beat being 42.91%.
Image Source: Zacks Investment Research
Return on equity, reflecting the company’s efficiency in utilizing shareholders’ fund, has averaged 19% in the last 10 years.
The Zacks Consensus Estimate for 2021 and 2022 earnings has moved up 6.7% and 2.7%, respectively in the past 60 days, reflecting analysts’ optimism.
Will the Bull Run Continue?
Solid segmental performance should continue to drive HCI Group. The company has delivered consistent profitability (52 out of last 54 quarters were profitable) and superior margins.
Homeowners Choice is well poised for consistent underwriting profitability, given prudent risk management. Non-catastrophic exposure and geographic diversification have supported it to deliver attritional gross loss ratio below 35%.
TypTap is on track to reach its goal of $200 million in in-force premium by 2021-end. While it is witnessing accelerated growth within Florida, it has also begun operating outside of Florida.
Greenleaf Capital, its real estate division, should continue to generate positive cash flows and capital appreciation.
It also engages in effective capital deployment. While this Zacks Rank #2 (Buy) insurer has a decent record of paying dividends for the last 42 quarters, it has bought back $185 million worth shares since inception.
It has an impressive Growth Score of A. This style score analyzes the growth prospect of a company. Back-tested results have shown that stocks with a Value Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2 offer better returns.
Notably, its share price more than doubled in the last five years and increased more than 1000% over the last 10 years.
Other Stocks to Consider
Investors interested in the same space can look Selective Insurance Group (SIGI - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Alleghany .
W.R. Berkley delivered an earnings surprise of 21.35% in the last-reported quarter. It sports a Zacks Rank #1.
Alleghany delivered an earnings surprise of 110.97% in the last-reported quarter. It carries a Zacks Rank #2.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
HCI Group (HCI) Stock Up 104% in a Year: More Upside Left?
Shares of HCI Group (HCI - Free Report) have rallied 103.9% in a year compared with the industry's increase of 35.5% and the Finance sector’s rally of 40.2%. The Zacks S&P 500 composite has rallied 35.7% in the said time frame. With a market capitalization of $0.8 billion, average volume of shares traded in the last three months was 0.1 million.
Well performing Homeowners Choice and TypTap coupled with conservative reserving practice should continue to drive HCI Group. The company has a decent track record of beating earnings estimates in three of the last four reported quarters and missing in one, with the average beat being 42.91%.
Return on equity, reflecting the company’s efficiency in utilizing shareholders’ fund, has averaged 19% in the last 10 years.
The Zacks Consensus Estimate for 2021 and 2022 earnings has moved up 6.7% and 2.7%, respectively in the past 60 days, reflecting analysts’ optimism.
Will the Bull Run Continue?
Solid segmental performance should continue to drive HCI Group. The company has delivered consistent profitability (52 out of last 54 quarters were profitable) and superior margins.
Homeowners Choice is well poised for consistent underwriting profitability, given prudent risk management. Non-catastrophic exposure and geographic diversification have supported it to deliver attritional gross loss ratio below 35%.
TypTap is on track to reach its goal of $200 million in in-force premium by 2021-end. While it is witnessing accelerated growth within Florida, it has also begun operating outside of Florida.
Greenleaf Capital, its real estate division, should continue to generate positive cash flows and capital appreciation.
It also engages in effective capital deployment. While this Zacks Rank #2 (Buy) insurer has a decent record of paying dividends for the last 42 quarters, it has bought back $185 million worth shares since inception.
It has an impressive Growth Score of A. This style score analyzes the growth prospect of a company. Back-tested results have shown that stocks with a Value Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2 offer better returns.
Notably, its share price more than doubled in the last five years and increased more than 1000% over the last 10 years.
Other Stocks to Consider
Investors interested in the same space can look Selective Insurance Group (SIGI - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Alleghany .
Selective Insurance delivered an earnings surprise of 75.26% in the last-reported quarter. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
W.R. Berkley delivered an earnings surprise of 21.35% in the last-reported quarter. It sports a Zacks Rank #1.
Alleghany delivered an earnings surprise of 110.97% in the last-reported quarter. It carries a Zacks Rank #2.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>