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Strength Seen in BRP Group (BRP): Can Its 6.1% Jump Turn into More Strength?

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BRP Group (BRP - Free Report) shares ended the last trading session 6.1% higher at $24.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.6% loss over the past four weeks.

The acquisition of Westwood Insurance Agency marks the company’s largest partnership that will help fuel growth initiatives in the substantial homeowners insurance market as Main Street segment more than double post the buyout.

The company expects considerable investment in technology and talent should fuel accelerating innovation, growth and profitability going ahead. It believes to attain $100 million to $150 million in acquired revenue in 2022.

BRP estimates to generate organic growth in the high-teens in second quarter of 2022, revenues to be about $220 million and for adjusted EBITDA margins to be 100 basis points to 150 basis points. For 2022, organic growth is estimated to grow in mid- to high-teens.

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +42.9%. Revenues are expected to be $220.81 million, up 84.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For BRP Group, the consensus EPS estimate for the quarter has been revised 2.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BRP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

BRP Group belongs to the Zacks Insurance - Life Insurance industry. Another stock from the same industry, GoHealth (GOCO - Free Report) , closed the last trading session 2.3% higher at $0.59. Over the past month, GOCO has returned -15.3%.

For GoHealth, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.14. This represents a change of -366.7% from what the company reported a year ago. GoHealth currently has a Zacks Rank of #3 (Hold).

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