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Strength Seen in Hagerty (HGTY): Can Its 5.8% Jump Turn into More Strength?

Zacks Equity Research
·2 min read

Hagerty, Inc. (HGTY) shares ended the last trading session 5.8% higher at $8.93. 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 0.4% loss over the past four weeks.

Shares have risen as investors are optimistic about the company's focus on expanding its Insurance, Membership, and Marketplace businesses, setting it up for consistent profit growth in the years ahead.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +175%. Revenues are expected to be $264.32 million, up 21.1% 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.

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For Hagerty, 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 HGTY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Hagerty belongs to the Zacks Automotive - Retail and Wholesale - Parts industry. Another stock from the same industry, AutoZone (AZO), closed the last trading session 2% lower at $2,903.51. Over the past month, AZO has returned -5.2%.

AutoZone's consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $35.72. Compared to the company's year-ago EPS, this represents a change of +4.7%. AutoZone currently boasts a Zacks Rank of #3 (Hold).

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Hagerty, Inc. (HGTY) : Free Stock Analysis Report

AutoZone, Inc. (AZO) : Free Stock Analysis Report

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Zacks Investment Research