Shares of Heritage Insurance (HRTG Quick QuoteHRTG - Free Report) have been strong performers lately, with the stock up 16.6% over the past month. The stock hit a new 52-week high of $29.96 in the previous session. Heritage Insurance has gained 144.1% since the start of the year compared to the 13.5% gain for the Zacks Finance sector and the 8.6% 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 November 5, 2025, Heritage Insurance reported EPS of $1.63 versus consensus estimate of $0.53.

For the current fiscal year, Heritage Insurance is expected to post earnings of $4.68 per share on $841.85 in revenues. This represents a 133.33% change in EPS on a 3.04% change in revenues. For the next fiscal year, the company is expected to earn $4.4 per share on $897.96 in revenues. This represents a year-over-year change of -6.08% and 6.67%, respectively.

Valuation Metrics

Heritage Insurance 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Heritage Insurance has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 6.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.9X. On a trailing cash flow basis, the stock currently trades at 13X versus its peer group's average of 12.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Heritage Insurance an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Heritage Insurance currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.

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 Heritage Insurance passes the test. Thus, it seems as though Heritage Insurance shares could have potential in the weeks and months to come.

How Does HRTG Stack Up to the Competition?

Shares of HRTG 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 Donegal Group, Inc. (DGICA Quick QuoteDGICA - Free Report) . DGICA has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of A.

Earnings were strong last quarter. Donegal Group, Inc. beat our consensus estimate by 19.44%, and for the current fiscal year, DGICA is expected to post earnings of $2.05 per share on revenue of $982.2 million.

Shares of Donegal Group, Inc. have gained 0.9% over the past month, and currently trade at a forward P/E of 8.37X and a P/CF of 13.48X.

The Insurance - Property and Casualty industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HRTG and DGICA, even beyond their own solid fundamental situation.