Exploring Momentum Investing: Is EverQuote (EVER) a Top Pick?
Momentum investing has been a popular strategy among traders and investors for decades. The basic premise is to buy stocks that have been performing well and sell those that have been underperforming, with the assumption that the trend will continue. In this article, we’ll take a closer look at EverQuote, Inc. (EVER) and evaluate its potential as a top pick for momentum investors.
About EverQuote
EverQuote is a leading online marketplace for insurance shopping. The company operates a consumer-focused platform that connects consumers with insurance providers, enabling them to compare and purchase insurance policies online. EverQuote’s marketplace offers a wide range of insurance products, including auto, home, and health insurance.
Financial Performance
Let’s start by examining EverQuote’s financial performance. Over the past 12 months, EVER’s stock price has increased by approximately 110%, outperforming the S&P 500’s return of around 24% during the same period. This strong performance can be attributed to several factors:
- Strong earnings: EverQuote reported impressive earnings in Q3 2021, with revenue growing by 33% year-over-year and earnings per share (EPS) beating analysts’ estimates by $0.11.
- Growing market: The online insurance market is growing rapidly, and EverQuote is well-positioned to capitalize on this trend. According to a report by Grand View Research, the global online insurance market is expected to reach $2.26 trillion by 2028, growing at a compound annual growth rate (CAGR) of 22.4% from 2021 to 2028.
- Strategic acquisitions: EverQuote has made strategic acquisitions to expand its offerings and strengthen its position in the market. For instance, it acquired Quadrant Information Services in 2019, which provided the company with access to a vast database of insurance rates and coverage options.
Impact on Individuals
For individual investors, EverQuote’s strong financial performance and growth potential make it an attractive pick for those seeking to capitalize on the momentum of the stock. However, it’s essential to remember that investing always carries risk, and past performance is not a guarantee of future results.
Impact on the World
From a broader perspective, EverQuote’s success could lead to increased competition in the online insurance market. This could result in lower prices and better deals for consumers, as insurers compete for market share. Additionally, the company’s growth could contribute to the overall growth of the online insurance market, making insurance shopping more accessible and convenient for people worldwide.
Conclusion
In conclusion, EverQuote’s impressive financial performance, growing market, and strategic acquisitions make it an intriguing pick for momentum investors. However, as with any investment, it’s crucial to do thorough research and consider the risks involved. For those seeking to capitalize on the momentum of the stock, EverQuote could be an excellent addition to their portfolio. Meanwhile, from a global perspective, the company’s success could lead to increased competition and better deals for consumers in the online insurance market.
