HCI Group (HCI) Gains As Market Dips: What You Should Know

Zacks03-20

In the latest market close, HCI Group (HCI) reached $137.07, with a +0.62% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.33%.

Coming into today, shares of the property and casualty insurance holding company had gained 14.24% in the past month. In that same time, the Finance sector lost 3.33%, while the S&P 500 lost 7.48%.

Analysts and investors alike will be keeping a close eye on the performance of HCI Group in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.49, signifying a 23.01% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $210.17 million, up 1.72% from the year-ago period.

HCI's full-year Zacks Consensus Estimates are calling for earnings of $14.98 per share and revenue of $881.26 million. These results would represent year-over-year changes of +102.16% and +17.49%, respectively.

Investors should also note any recent changes to analyst estimates for HCI Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.99% higher. Right now, HCI Group possesses a Zacks Rank of #1 (Strong Buy).

With respect to valuation, HCI Group is currently being traded at a Forward P/E ratio of 9.09. This represents a discount compared to its industry's average Forward P/E of 11.88.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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