EverQuote-EVER Stock Trading at a Premium to Industry: Will You Still Buy It?

Core Viewpoint - EverQuote, Inc. (EVER) is trading at a premium compared to the Zacks Multiline Insurance industry, with a price-to-book value of 5.69X against the industry average of 2.3X [1] Company Performance - EverQuote has a market capitalization of $669 million and an average trading volume of 0.5 million shares over the last three months [1] - EVER shares have gained 2.8% in the past month, outperforming its industry, sector, and the Zacks S&P 500 composite [4] - The shares are trading well above the 50-day moving average, indicating a bullish trend [7] Financial Metrics - Return on equity (ROE) for the trailing 12 months is 13.9%, which is lower than the industry average of 15.3% [8] - Return on invested capital (ROIC) for the trailing 12 months is 13.7%, significantly higher than the industry average of 2.4% [8] Growth Factors - Despite a prolonged downturn in auto insurance affecting revenues, EverQuote is positioned to benefit from the recovery in auto carrier demand [10] - The company aims to increase consumer traffic by expanding advertising channels and leveraging its data assets [11] - Variable marketing margin (VMM) is improving, with expectations of strong revenue growth during the annual health open enrollment period [12] Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings has increased by 3 cents in the past 30 days, with an expected earnings of 80 cents, reflecting a 10.7% increase on revenues of$ 578 million, which is 18.8% higher [13] - The average price target for EVER is $32.17 per share, suggesting a potential upside of 69.9% from the recent closing price [14] Long-term Outlook - EverQuote is expected to benefit from its exclusive data assets, technology, and a strong financial profile, positioning it for long-term growth [15]