​Goosehead Insurance, Inc. (NASDAQ:GSHD) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On October 6, Keefe Bruyette analyst Tommy McJoynt lowered the firm’s price target on Goosehead Insurance, Inc. (NASDAQ:GSHD) from $120 to $102, while keeping an Outperform rating on the stock. ​The company delivered strong results in its fiscal second quarter of 2025. Its revenue of $94.03 million grew 20.41% year-over-year and was ahead of the consensus by $353,580. This was driven by an 18% ...

Core Insights - Goosehead Insurance, Inc. is recognized for its innovative approach in the personal lines insurance market, utilizing technology to enhance customer experience and streamline operations [1] - The company demonstrates strong financial performance with a Return on Invested Capital (ROIC) of 14.63% and a Weighted Average Cost of Capital (WACC) of 9.74%, resulting in a favorable ROIC to WACC ratio of 1.50 [2][6] Financial Performance - Goosehead's ROIC of 14.63% indicates effective capital utilization, outperforming peers like Live Oak Bancshares, Inc. which has a ROIC of 4.52% and a WACC of 32.88%, leading to a low ROIC to WACC ratio of 0.14 [3][6] - Kinsale Capital Group, Inc. has a ROIC of 10.64% and a WACC of 9.02%, resulting in a ROIC to WACC ratio of 1.18, which is lower than Goosehead's efficiency [4][6] - Hamilton Lane Incorporated shows the highest ROIC to WACC ratio of 1.93 with a ROIC of 18.05% and a WACC of 9.37%, indicating superior growth potential compared to Goosehead [5][6]

Core Insights - Goosehead Insurance and Nan & Company Properties have expanded their strategic franchise arrangement to create Altivo Insurance, enhancing the homebuying experience by integrating home insurance options directly into real estate transactions [1][2][4] - The collaboration aims to provide clients with a seamless, luxury-grade experience, offering a broad portfolio of insurance carriers and expert guidance during the home purchase process [2][3] - The partnership addresses the critical need for reliable home insurance in Houston, particularly due to the city's frequent weather-related challenges [2][4] Company Overview - Goosehead Insurance is a rapidly growing independent personal lines insurance agency, founded on the principle of prioritizing consumer needs and providing exceptional value through a wide range of product choices [5] - Nan & Company Properties, established in 2014, has become a leading luxury real estate brokerage in Houston, with over 200 agents and nearly $1 billion in annual sales volume [3][6] - Both companies emphasize client service, innovation, and the enhancement of Houston's luxury real estate ecosystem through their collaboration [4][6]

Core Insights - Goosehead Insurance and Nan & Company Properties have expanded their strategic franchise arrangement to create Altivo Insurance, aimed at enhancing the homebuying process by integrating home insurance options directly into real estate transactions [1][2][4] - The collaboration seeks to provide clients with a seamless experience, offering a broad portfolio of insurance carriers and expert guidance, which is particularly beneficial in Houston's challenging weather conditions [2][3][4] Company Overview - Goosehead Insurance is a rapidly growing independent personal lines insurance agency, founded on the principle of prioritizing consumer needs and providing exceptional value through a wide range of product choices and service experiences [5] - Nan & Company Properties, established in 2014, has become a leading luxury real estate brokerage in Houston, with over 200 agents and nearly $1 billion in annual sales volume, focusing on modernizing the real estate experience through communication and innovation [3][6] Strategic Collaboration - The partnership between Goosehead Insurance and Nan & Company Properties through Altivo Insurance aims to eliminate friction in securing tailored insurance coverage during the homebuying process, thereby enhancing client confidence in their investments [3][4] - Altivo Insurance will offer a greater variety of home insurance options than typically available in the Houston market, addressing the city's frequent weather-related challenges [2][4]

Core Insights - Goosehead Insurance, Inc. is recognized for its innovative approach in the personal lines insurance sector, utilizing technology to enhance customer experience and streamline operations [1] - The company demonstrates strong financial performance with a Return on Invested Capital (ROIC) of 14.63%, significantly exceeding its Weighted Average Cost of Capital (WACC) of 9.61% [2] - Goosehead's ROIC to WACC ratio of 1.52 indicates effective capital management, positioning it favorably compared to peers [2][5] Financial Performance Comparison - Live Oak Bancshares, Inc. has a ROIC of 4.52% and a WACC of 31.61%, resulting in a low ROIC to WACC ratio of 0.14, indicating poor capital efficiency [3] - Kinsale Capital Group, Inc. shows a ROIC of 10.64% against a WACC of 8.86%, achieving a ROIC to WACC ratio of 1.20, which is better than Live Oak [3] - Sprout Social, Inc. reports a negative ROIC of -25.59% with a WACC of 7.66%, leading to a negative ROIC to WACC ratio of -3.34, highlighting its challenges in generating returns [4] - Palomar Holdings, Inc. has a ROIC of 2.82% and a WACC of 5.20%, resulting in a ROIC to WACC ratio of 0.54, indicating potential for improvement [4] - Hamilton Lane Incorporated stands out with a ROIC of 18.05% and a WACC of 9.22%, achieving the highest ROIC to WACC ratio of 1.96 among peers, showcasing superior capital utilization [5]

Core Viewpoint - Goosehead Insurance has expanded the role of Mark Jones, Jr. to include both Chief Financial Officer and Chief Operating Officer, aiming to enhance operational efficiency and strategic execution [1][3]. Company Overview - Goosehead Insurance, Inc. is a rapidly growing independent personal lines insurance agency operating through corporate and franchise locations across the United States [4]. - The company represents over 200 insurance companies that underwrite personal and commercial lines, focusing on providing exceptional value and service to consumers [4]. Leadership and Strategy - Mark Jones, Jr. has been with Goosehead since 2016 and has extensive experience in finance, operations, and corporate strategy [2]. - The combination of CFO and COO roles under Jones is expected to strengthen the company's long-term strategy execution and operational discipline, ultimately delivering greater value to shareholders [3]. - Jones expressed enthusiasm for his expanded role, emphasizing the importance of unifying finance, operations, and go-to-market teams to drive the company's growth and success [3].

Investment Recommendations - Zacks 排名第一的股票被评为“强力买入”[1] - Zacks 排名第五的股票被评为“强力卖出”[1] Actionable Insights - Zacks 提供未来 30 天内有望跑赢市场的七只股票[1] - 访问 zachs.com/bull 获取精选股票信息[1]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions. Group 1: Company Specifics - ARMOUR Residential REIT, Inc. (ARR) invests in residential mortgage-backed securities, with a Zacks Consensus Estimate for its current year earnings revised downward by 6.1% over the last 60 days [1] - Goosehead Insurance, Inc. (GSHD), the holding company for Goosehead Financial, LLC, has seen its Zacks Consensus Estimate for current year earnings revised downward by 1.6% over the last 60 days [1] - Installed Building Products, Inc. (IBP) is a leading installation contractor for insulation in residential and commercial sectors, with its Zacks Consensus Estimate for current year earnings revised downward by 2.1% over the last 60 days [2]

Core Insights - Goosehead Insurance reported mixed results for Q2, with earnings per share of $0.49, missing the analyst consensus estimate of $0.50, while quarterly sales of $94.03 million exceeded the estimate of $93.85 million [1] Financial Performance - The company achieved premium growth of 18%, total revenue growth of 20%, and core revenue growth of 18% in Q2 [2] - Net income declined by 24%, with a net income margin of 9%, while adjusted EBITDA grew by 18%, resulting in an adjusted EBITDA margin of 31% [2] - Goosehead Insurance affirmed its FY2025 sales guidance of $350 million to $385 million [2] Stock Performance - Following the earnings announcement, Goosehead Insurance shares fell by 15.5%, trading at $87.39 [3] - Analysts adjusted their price targets, with Piper Sandler downgrading the stock from Overweight to Neutral and lowering the price target from $122 to $109, while Keefe, Bruyette & Woods maintained an Outperform rating but cut the price target from $130 to $120 [8]

Core Insights - Goosehead Insurance has formed a strategic franchise partnership with Baird & Warner Real Estate, creating the Adaptive Insurance Agency to integrate insurance services into the homebuying journey [1][2] - This collaboration aims to enhance client convenience by allowing Baird & Warner clients to purchase insurance directly during real estate transactions, providing access to a wide range of insurance carriers and expert guidance [2][3] Company Overview - Goosehead Insurance is a rapidly growing independent personal lines insurance agency, distributing products through corporate and franchise locations across the United States, representing over 200 insurance companies [5] - Baird & Warner, established in 1855, is the largest independent real estate services company in Chicagoland, recognized for its commitment to innovation and client advocacy, with over 2,000 broker associates [6]