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HCI Group, Inc. (HCI) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of HCI Group (HCI - Free Report) ? Shares have been on the move with the stock up 19.3% over the past month. The stock hit a new 52-week high of $119.6 in the previous session. HCI Group has gained 35.8% since the start of the year compared to the 6.7% move for the Zacks Finance sector and the 15.7% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 7, 2024, HCI Group reported EPS of $3.22 versus consensus estimate of $1.41 while it beat the consensus revenue estimate by 11.35%.
For the current fiscal year, HCI Group is expected to post earnings of $10.22 per share on $796.64 million in revenues. This represents a 37.92% change in EPS on a 44.67% change in revenues. For the next fiscal year, the company is expected to earn $11.41 per share on $853.1 million in revenues. This represents a year-over-year change of 11.61% and 7.09%, respectively.
Valuation Metrics
HCI Group may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
HCI Group has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.5X. On a trailing cash flow basis, the stock currently trades at 12.7X versus its peer group's average of 14X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, HCI Group currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if HCI Group meets the list of requirements. Thus, it seems as though HCI Group shares could have potential in the weeks and months to come.
How Does HCI Stack Up to the Competition?
Shares of HCI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Heritage Insurance Holdings, Inc. (HRTG - Free Report) . HRTG has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Heritage Insurance Holdings, Inc. beat our consensus estimate by 155.56%, and for the current fiscal year, HRTG is expected to post earnings of $1.53 per share on revenue of $770.86 million.
Shares of Heritage Insurance Holdings, Inc. have gained 45% over the past month, and currently trade at a forward P/E of 6.78X and a P/CF of 7.72X.
The Insurance - Property and Casualty industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HCI and HRTG, even beyond their own solid fundamental situation.
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HCI Group, Inc. (HCI) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of HCI Group (HCI - Free Report) ? Shares have been on the move with the stock up 19.3% over the past month. The stock hit a new 52-week high of $119.6 in the previous session. HCI Group has gained 35.8% since the start of the year compared to the 6.7% move for the Zacks Finance sector and the 15.7% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 7, 2024, HCI Group reported EPS of $3.22 versus consensus estimate of $1.41 while it beat the consensus revenue estimate by 11.35%.
For the current fiscal year, HCI Group is expected to post earnings of $10.22 per share on $796.64 million in revenues. This represents a 37.92% change in EPS on a 44.67% change in revenues. For the next fiscal year, the company is expected to earn $11.41 per share on $853.1 million in revenues. This represents a year-over-year change of 11.61% and 7.09%, respectively.
Valuation Metrics
HCI Group may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
HCI Group has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.5X. On a trailing cash flow basis, the stock currently trades at 12.7X versus its peer group's average of 14X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, HCI Group currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if HCI Group meets the list of requirements. Thus, it seems as though HCI Group shares could have potential in the weeks and months to come.
How Does HCI Stack Up to the Competition?
Shares of HCI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Heritage Insurance Holdings, Inc. (HRTG - Free Report) . HRTG has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Heritage Insurance Holdings, Inc. beat our consensus estimate by 155.56%, and for the current fiscal year, HRTG is expected to post earnings of $1.53 per share on revenue of $770.86 million.
Shares of Heritage Insurance Holdings, Inc. have gained 45% over the past month, and currently trade at a forward P/E of 6.78X and a P/CF of 7.72X.
The Insurance - Property and Casualty industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HCI and HRTG, even beyond their own solid fundamental situation.