EverQuote Stock Rallies 297.1% in a Year: More Room for Growth?
EverQuote, Inc.’s EVER shares have rallied 297.1% over the past year compared with the industry's growth of 26.9%. The Finance sector and the Zacks S&P 500 composite have returned 28% and 24.9%, respectively, in the same time frame. With a market capitalization of $866.58 million, the average volume of shares traded in the last three months was 0.5 million.
EVER Outperforms Industry, Sector, S&P 500
Image Source: Zacks Investment Research
The rally was largely driven by increasing consumer traffic, higher quote request volume, solid performance of automotive and other insurance marketplace verticals and favorable growth estimates.
This multi-line insurer, carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise in each of the last four quarters. EVER also has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company.
EVER’s Growth Projection Encourages
The Zacks Consensus Estimate for EverQuote’s 2024 earnings per share indicates a year-over-year increase of 137%. The consensus estimate for revenues is pegged at $473.50 million, implying a year-over-year improvement of 64.4%. The consensus estimate for 2025 earnings per share and revenues indicates an increase of 43.8% and 23.1%, respectively, from the corresponding 2024 estimates.
EVER Witnessing Northbound Estimate Revision
The Zacks Consensus Estimate for EverQuote’s 2024 and 2025 earnings has moved 1,040% and 331.6% north, respectively, in the past 30 days, reflecting analyst optimism.
EVER’s Style Score
EVER has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best opportunities in the value investing space.
Factors Acting in Favor of EVER
EverQuote’s top line has been increasing over the years owing to the solid performance of automotive and other insurance marketplace verticals. It remains well-poised to gain from the normalization of auto insurance carrier demand, given auto carrier recovery. It also remains focused on rapidly expanding into new verticals.
Increasing consumer traffic, higher quote request volume and innovating advertiser products and services will continue to drive revenues. EverQuote expects revenues between $137 million and $143 million in the third quarter of 2024.
The variable marketing margin (VMM) is likely to gain from declining customer acquisition costs and a shift in the revenue mix to local agent networks with higher VMMs. EVER expects the dynamics of the auto insurance market to put pressure on VMM within the auto insurance vertical. Apart from the auto insurance vertical, the company expects VMM to benefit from strong revenue growth within the health direct-to-consumer agency during the annual health open enrollment period. This is expected to drive the VMM operating point for the business. EverQuote expects VMM in the third quarter of 2024 between $38.5 million and $41.5 million.
EVER boasts a debt free balance sheet with cash balance improving over the last three years. The company 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.
In its efforts to strengthen its balance sheet and liquidity position, EverQuote modified its existing loan agreement with Western Alliance Bank. The company has a $25 million undrawn working capital line of credit with Western Alliance Bank, which is available until July 2025.
Other Stocks to Consider
Some other top-ranked stocks from the insurance industry are Assurant, Inc. AIZ, Radian Group Inc. RDN and Old Republic International Corporation ORI. While Assurant sports a Zacks Rank #1, Radian and Old Republic International carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Assurant has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 33.56%. In the past year, shares of AIZ have rallied 40.2%.
The Zacks Consensus Estimate for AIZ’s 2024 and 2025 earnings implies year-over-year growth of 6.7% and 6.1%, respectively.
Radian Group has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 21.3%. In the past year, shares of RDN have jumped 32.7%.
The Zacks Consensus Estimate for RDN’s 2024 and 2025 revenues implies year-over-year growth of 6.2% and 5.5%, respectively.
Old Republic International has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 9%. In the past year, shares of ORI have climbed 30.8%.
The Zacks Consensus Estimate for ORI’s 2024 and 2025 earnings implies year-over-year growth of 7.6% and 4.4%, respectively.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
Radian Group Inc. (RDN) : Free Stock Analysis Report
EverQuote, Inc. (EVER) : Free Stock Analysis Report
Old Republic International Corporation (ORI) : Free Stock Analysis Report