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Should You Retain EverQuote (EVER) Stock in Your Portfolio?
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EverQuote, Inc. (EVER - Free Report) has been gaining momentum, banking on higher commissions revenues, strategic acquisitions and solid traffic operations.
Growth Projections
The Zacks Consensus Estimate for EverQuote’s 2023 earnings indicates year-over-year growth of 28.9%.
Earnings Surprise History
EverQuote has a decent earnings surprise history. Its bottom line beat estimates in three of the last four quarters and missed in one, the average being 13.4%.
Business Tailwinds
EverQuote’s revenues are likely to gain from the solid performance of automotive insurance providers. The Zacks Consensus Estimate for EverQuote’s 2023 revenues is pegged at $484.7 million, indicating a year-over-year increase of 17.4%.
Riding on the strength of traffic operations that attract more consumers to the marketplace, quote request growth is likely to improve.
Increased quote requests and growth in commissions revenues are expected to drive the variable marketing margin.
Increased advertising to attract consumers and higher commission revenues are likely to lead to an increase in the volume of quote requests.
EVER witnessed impressive inorganic growth. The insurer acquired PolicyFuel, LLC and its affiliated entities in August 2021 to support its property and casualty (P&C) carrier partners. In this recent deal, PSaaS offerings of PolicyFuel for P&C markets will further extend EverQuote’s existing Direct-To-Consumer Agency (DTCA) strategy in Health and Life insurance verticals. PolicyFuel's policy sales-as-a-service business model is expected to provide the insurer with revenue diversity during a challenging period for the auto insurance marketplace.
Solid Capital Position
This multi-line insurer boasts a debt-free balance sheet. EVER aims to meet 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.
Zacks Rank & Price Performance
EverQuote currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 74.4% compared with the industry’s decline of 12.8%. We believe its operational efficiencies and solid capital position will help shares bounce back.
MetLife’s earnings surpassed estimates in each of the last four quarters, the average beat being 42.9%.
The Zacks Consensus Estimate for MetLife’s 2022 and 2023 earnings has moved 0.5% to 0.4% north, respectively, in the past 30 days. In the past year, MET stock has gained 4.7%.
The Zacks Consensus Estimate for MGIC Investment’s 2022 and 2023 earnings has moved 1.8% and 3.2% north, respectively, in the past 30 days.
MTG’s earnings surpassed estimates in each of the last four quarters, the average beat being 10.94%. In the past year, MTG stock has lost 2.5%.
The Zacks Consensus Estimate for James River’s 2022 and 2023 earnings per share indicates year-over-year increases of 136% and 13.1%, respectively.
The Zacks Consensus Estimate for JRVR’s 2022 and 2023 earnings has moved 15.1% and 4.9% north, respectively, in the past 30 days. In the past year, JRVR stock has lost 28%.
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Should You Retain EverQuote (EVER) Stock in Your Portfolio?
EverQuote, Inc. (EVER - Free Report) has been gaining momentum, banking on higher commissions revenues, strategic acquisitions and solid traffic operations.
Growth Projections
The Zacks Consensus Estimate for EverQuote’s 2023 earnings indicates year-over-year growth of 28.9%.
Earnings Surprise History
EverQuote has a decent earnings surprise history. Its bottom line beat estimates in three of the last four quarters and missed in one, the average being 13.4%.
Business Tailwinds
EverQuote’s revenues are likely to gain from the solid performance of automotive insurance providers. The Zacks Consensus Estimate for EverQuote’s 2023 revenues is pegged at $484.7 million, indicating a year-over-year increase of 17.4%.
Riding on the strength of traffic operations that attract more consumers to the marketplace, quote request growth is likely to improve.
Increased quote requests and growth in commissions revenues are expected to drive the variable marketing margin.
Increased advertising to attract consumers and higher commission revenues are likely to lead to an increase in the volume of quote requests.
EVER witnessed impressive inorganic growth. The insurer acquired PolicyFuel, LLC and its affiliated entities in August 2021 to support its property and casualty (P&C) carrier partners. In this recent deal, PSaaS offerings of PolicyFuel for P&C markets will further extend EverQuote’s existing Direct-To-Consumer Agency (DTCA) strategy in Health and Life insurance verticals. PolicyFuel's policy sales-as-a-service business model is expected to provide the insurer with revenue diversity during a challenging period for the auto insurance marketplace.
Solid Capital Position
This multi-line insurer boasts a debt-free balance sheet. EVER aims to meet 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.
Zacks Rank & Price Performance
EverQuote currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 74.4% compared with the industry’s decline of 12.8%. We believe its operational efficiencies and solid capital position will help shares bounce back.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked insurers are MetLife, Inc. (MET - Free Report) , MGIC Investment Corporation (MTG - Free Report) and James River Group Holdings, Ltd. (JRVR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MetLife’s earnings surpassed estimates in each of the last four quarters, the average beat being 42.9%.
The Zacks Consensus Estimate for MetLife’s 2022 and 2023 earnings has moved 0.5% to 0.4% north, respectively, in the past 30 days. In the past year, MET stock has gained 4.7%.
The Zacks Consensus Estimate for MGIC Investment’s 2022 and 2023 earnings has moved 1.8% and 3.2% north, respectively, in the past 30 days.
MTG’s earnings surpassed estimates in each of the last four quarters, the average beat being 10.94%. In the past year, MTG stock has lost 2.5%.
The Zacks Consensus Estimate for James River’s 2022 and 2023 earnings per share indicates year-over-year increases of 136% and 13.1%, respectively.
The Zacks Consensus Estimate for JRVR’s 2022 and 2023 earnings has moved 15.1% and 4.9% north, respectively, in the past 30 days. In the past year, JRVR stock has lost 28%.