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Should You Hold EverQuote (EVER) Stock in Your Portfolio?
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EverQuote, Inc.’s (EVER - Free Report) reduced operating expenses, the enhancement of its platform via machine learning and artificial intelligence, and expected recovery in the auto insurance business make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for EverQuote’s 2024 earnings per share (EPS) indicates a year-over-year increase of 68.1% from the consensus estimate of 2023. The consensus estimate for revenues is pegged at $320.26 million, implying a year-over-year improvement of 11.2% from the consensus mark of 2023.
The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 56.8% from the consensus estimate of 2024. The consensus estimate for revenues is pinned at $391.32 million, implying a year-over-year improvement of 22.1% from the consensus mark of 2024.
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 36.78%.
Zacks Rank & Price Performance
EVER currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has risen 41.7% compared with the industry’s growth of 29.4%.
Image Source: Zacks Investment Research
Growth Drivers
EVER 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.
The variable marketing margin (VMM) is likely to gain from declining customer acquisition costs and a shift in the revenue mix to local agent networks with higher VMMs. The company expects VMM to benefit 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 the VMM operating point for the business. EverQuote expects VMM in the first quarter of 2024 between $26 million and $28 million.
EVER 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. In its efforts to strengthen its balance sheet and liquidity position, EVER modified the existing loan agreement with Western Alliance Bank. The company has a $25 million undrawn working capital line of credit with Western Alliance Bank, which is available until July 2025.
The company discontinued its health insurance vertical in June 2023 in a bid to reduce expenses and enhance capital efficiencies. Moreover, EVER focused its resources on home and renters’ insurance, whose revenues showed a year-over-year improvement of 51% in the third quarter. This move highlights its ability to generate a good top-line performance from a less troubled segment.
EverQuote's expectation of insurance premium increases and improving the profitability of insurance carriers should fuel its top-line growth in the near future on higher customer acquisition demand. The cost of claims shows signs of stabilization, improving the prospects for EVER and the auto insurance industry.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Horace Mann Educators Corporation (HMN - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Assurant, Inc. (AIZ - Free Report) . While Horace Mann and CNO Financial sport a Zacks Rank #1 (Strong Buy), Assurant carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann Educators’ earnings surpassed estimates in each of the last four quarters, delivering an average surprise of 15.24%.
The Zacks Consensus Estimate for HMN’s 2024 and 2025 earnings implies year-over-year growth of 104.5% and 19%, respectively, from the consensus estimate of the corresponding years. In the past year, the insurer has gained 4.3%.
CNO Financial’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average earnings surprise being 3.62%.
The Zacks Consensus Estimate for CNO’s 2024 and 2025 earnings implies year-over-year growth of 2.5% and 7.1%, respectively, from the consensus estimate of the corresponding years. In the past year, the insurer has jumped 22.6%.
Assurant’s earnings surpassed estimates in each of the last four quarters, delivering an average surprise of 42.15%.
The Zacks Consensus Estimate for AIZ’s 2024 and 2025 earnings implies year-over-year growth of 3.4% and 7.7%, respectively, from the consensus estimate of the corresponding years. In the past year, the insurer has surged 62.9%.
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Should You Hold EverQuote (EVER) Stock in Your Portfolio?
EverQuote, Inc.’s (EVER - Free Report) reduced operating expenses, the enhancement of its platform via machine learning and artificial intelligence, and expected recovery in the auto insurance business make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for EverQuote’s 2024 earnings per share (EPS) indicates a year-over-year increase of 68.1% from the consensus estimate of 2023. The consensus estimate for revenues is pegged at $320.26 million, implying a year-over-year improvement of 11.2% from the consensus mark of 2023.
The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 56.8% from the consensus estimate of 2024. The consensus estimate for revenues is pinned at $391.32 million, implying a year-over-year improvement of 22.1% from the consensus mark of 2024.
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 36.78%.
Zacks Rank & Price Performance
EVER currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has risen 41.7% compared with the industry’s growth of 29.4%.
Image Source: Zacks Investment Research
Growth Drivers
EVER 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.
The variable marketing margin (VMM) is likely to gain from declining customer acquisition costs and a shift in the revenue mix to local agent networks with higher VMMs. The company expects VMM to benefit 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 the VMM operating point for the business. EverQuote expects VMM in the first quarter of 2024 between $26 million and $28 million.
EVER 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. In its efforts to strengthen its balance sheet and liquidity position, EVER modified the existing loan agreement with Western Alliance Bank. The company has a $25 million undrawn working capital line of credit with Western Alliance Bank, which is available until July 2025.
The company discontinued its health insurance vertical in June 2023 in a bid to reduce expenses and enhance capital efficiencies. Moreover, EVER focused its resources on home and renters’ insurance, whose revenues showed a year-over-year improvement of 51% in the third quarter. This move highlights its ability to generate a good top-line performance from a less troubled segment.
EverQuote's expectation of insurance premium increases and improving the profitability of insurance carriers should fuel its top-line growth in the near future on higher customer acquisition demand. The cost of claims shows signs of stabilization, improving the prospects for EVER and the auto insurance industry.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Horace Mann Educators Corporation (HMN - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Assurant, Inc. (AIZ - Free Report) . While Horace Mann and CNO Financial sport a Zacks Rank #1 (Strong Buy), Assurant carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann Educators’ earnings surpassed estimates in each of the last four quarters, delivering an average surprise of 15.24%.
The Zacks Consensus Estimate for HMN’s 2024 and 2025 earnings implies year-over-year growth of 104.5% and 19%, respectively, from the consensus estimate of the corresponding years. In the past year, the insurer has gained 4.3%.
CNO Financial’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average earnings surprise being 3.62%.
The Zacks Consensus Estimate for CNO’s 2024 and 2025 earnings implies year-over-year growth of 2.5% and 7.1%, respectively, from the consensus estimate of the corresponding years. In the past year, the insurer has jumped 22.6%.
Assurant’s earnings surpassed estimates in each of the last four quarters, delivering an average surprise of 42.15%.
The Zacks Consensus Estimate for AIZ’s 2024 and 2025 earnings implies year-over-year growth of 3.4% and 7.7%, respectively, from the consensus estimate of the corresponding years. In the past year, the insurer has surged 62.9%.