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Citizens (CIA) Surges 9.0%: Is This an Indication of Further Gains?

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Citizens (CIA - Free Report) shares ended the last trading session 9% higher at $5.09. 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 13% loss over the past four weeks.

Citizens’ fourth quarter revenues surpassed estimate as well as improved year over year. Notably, total annual premium revenue grew for the first time since 2017, banking on its growth-oriented strategic initiatives. First year premiums increased year-over-year for the nine straight quarters.

The company noted expansion of distribution channels led to the issuance of the highest amount of insurance as well as the highest-ever total direct insurance in force in 2024.

CIA expect sales growth leading to revenue and profit growth in 2025 and stronger growth in 2026. It is now licensed in 43 U.S. states and Washington, D.C., up from 39 at 2023 year-end. Jon Stenberg, President and Chief Executive Officer stated ‘competitive advantages in expanding niche markets globally, rapid sales force expansion, and expertise in profitable product development, reinforces great confidence in our outlook’.

This insurance company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -52.4%. Revenues are expected to be $65.24 million, down 0.6% 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 Citizens, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CIA 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 >>>>

Citizens is a member of the Zacks Insurance - Life Insurance industry. One other stock in the same industry, GoHealth (GOCO - Free Report) , finished the last trading session 5.2% higher at $13.57. GOCO has returned -32.6% over the past month.

GoHealth's consensus EPS estimate for the upcoming report has changed +69.1% over the past month to -$0.24. Compared to the company's year-ago EPS, this represents a change of +73%. GoHealth currently boasts a Zacks Rank of #1 (Strong Buy).


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