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Here's Why You Should Hold EverQuote (EVER) in Your Portfolio

EverQuote, Inc. EVER has been gaining momentum on the back of revenue growth within the health direct-to-consumer agency, higher quote request volume and innovating advertiser products and a robust capital position.

Growth Projections

The Zacks Consensus Estimate for EverQuote’s 2024 earnings implies a year-over-year increase of 36%, driven by 16.9% higher revenues of $403.26 million.

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 46.82%.

Zacks Rank & Price Performance

EVER currently carries a Zacks Rank #3 (Hold). In the past one year, the stock has lost 7.8% compared with the industry’s decrease of 5.7%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Business Tailwinds

EverQuote's top line has been increasing over the years owing to the solid performance of automotive and other insurance marketplace verticals.

EVER also remains focused on rapidly expanding into new verticals. Non-auto insurance revenues are likely to gain from strong execution in the health insurance vertical and specifically from direct-to-consumer agency policy sales.

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.

Variable marketing margin (VMM) is likely to gain 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 VMM operating point for the business.

Increasing consumer traffic, higher quote request volume and innovating advertiser products and services will continue to boost revenues.

EverQuote 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, 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.

Stocks to Consider

Some better-ranked stocks from the multi-line insurance industry are American International Group, Inc. AIG, Assurant, Inc. AIZ and Old Republic International Corporation ORI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

American International Group’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 9.22%.

The Zacks Consensus Estimate for AIG’s 2023 and 2024 earnings implies 44.6% and 19.7% year-over-year growth, respectively. In the past year, the insurer has gained 6%.

Assurant’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 18.1%.

The Zacks Consensus Estimate for AIZ’s 2023 and 2024 earnings implies 24.9% and 13.6% year-over-year growth, respectively. In the past year, the insurer has declined 27.7%.

Old Republic International’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.8%.

The Zacks Consensus Estimate for ORI’s 2023 and 2024 earnings has moved 9.1% and 6.4% north, respectively, in the past 60 days. In the past year, the insurer has gained 12.3%.

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American International Group, Inc. (AIG) : Free Stock Analysis Report

Assurant, Inc. (AIZ) : Free Stock Analysis Report

EverQuote, Inc. (EVER) : Free Stock Analysis Report

Old Republic International Corporation (ORI) : Free Stock Analysis Report

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Zacks Investment Research