EverQuote, Inc. ( EVER Quick Quote EVER - Free Report) is well-poised for growth, driven by higher commission revenues, inorganic growth and solid traffic operations. Growth Projections
The Zacks Consensus Estimate for EverQuote’s 2023 earnings indicates year-over-year growth of 32.4%.
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%.
Revenues of EverQuote are likely to gain from the solid performance of automotive insurance providers, which account for the lion’s share of the total revenues. The Zacks Consensus Estimate for EverQuote’s 2023 revenues is pegged at $484.7 million, indicating a year-over-year rise of 17.4%.
Quote request growth is likely to improve, riding on the strength of traffic operations that attract more consumers to the marketplace. Increased quote requests and growth in commission revenues are expected to drive the variable marketing margin (VMM). EverQuote expects VMM to gain from strong revenue growth within the health direct-to-consumer agency during the annual health open enrolment period. This, in turn, is expected to drive an improvement in VMM operating point for the overall business. Increased advertising to attract consumers and higher commission revenues are likely to lead to an increase in the volume of quote requests. This multi-line insurer 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 the recent deal, PSaaS offerings of PolicyFuel for P&C markets will further extend EverQuote’s existing Direct-To-Consumer Agency 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. EverQuote intends to meet 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 69.6% compared with the
industry’s decline of 13%.
Image Source: Zacks Investment Research Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are James River Group Holdings, Ltd. (
JRVR Quick Quote JRVR - Free Report) , Zurich Insurance Group Ltd. ( ZURVY Quick Quote ZURVY - Free Report) and MGIC Investment Corporation ( MTG Quick Quote MTG - Free Report) . While James River Group currently sports a Zacks Rank #1 (Strong Buy), Zurich Insurance and MGIC Investment carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for James River Group’s 2022 and 2023 earnings implies 136% and 13.1% year-over-year growth, respectively. The Zacks Consensus Estimate for JRVR’s 2022 and 2023 earnings has moved 15.1% and 4.9% north, respectively, in the past 60 days. In the past year, the insurer has declined 36.2%. The Zacks Consensus Estimate for Zurich Insurance’s 2022 and 2023 earnings has moved 3% and 5.1% north, respectively, in the past 60 days. In the past year, the ZURVY stock has rallied 7.5%. The Zacks Consensus Estimate for Zurich Insurance’s 2022 and 2023 earnings implies 7.5% and 9.6 year-over-year growth, respectively. MGIC Investment’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 10.9%. In the past year, the MTG stock has lost 6%. The Zacks Consensus Estimate for MGIC Investment’s 2022 and 2023 earnings has moved 1.8% and 3.2% north, respectively, in the past 60 days.