Can Hagerty (HGTY) Run Higher on Rising Earnings Estimates?

Core Viewpoint - Hagerty, Inc. (HGTY) is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Hagerty's earnings prospects, reflected in the upward trend of earnings estimate revisions, which historically correlate with stock price movements [2]. - The current-quarter earnings estimate is $0.13 per share, representing an 8.3% increase from the previous year, with a 6.45% rise in the Zacks Consensus Estimate over the last 30 days, indicating no negative revisions [7]. - For the full year, the expected earnings are $0.35 per share, marking a 45.8% increase from the prior year, with a similar trend of one upward revision and no negative changes in estimates [8]. Zacks Rank and Performance - The positive revisions have led to Hagerty earning a Zacks Rank 1 (Strong Buy), which is associated with a strong historical performance, averaging a 25% annual return since 2008 for Zacks 1 ranked stocks [3][9]. - Stocks with Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500, reinforcing the potential for Hagerty's stock to deliver strong returns [9]. Market Reaction - The stock has gained 5.6% over the past four weeks, driven by favorable estimate revisions, suggesting that investors are increasingly confident in Hagerty's earnings growth prospects [10].