EverQuote Trades Above 200-Day SMA: Time to Buy the Stock?

Core Insights - EverQuote, Inc. (EVER) is currently trading above its 200-day simple moving average (SMA), indicating a short-term bullish trend despite a recent price drop of 21.6% from its 52-week high of $30.03 [1][7] - The company has a market capitalization of $859.8 million and has seen its shares gain 7.7% year to date, underperforming compared to its industry and the broader market [2] Price Performance - EverQuote's share price as of Monday was $23.55, which is lower than the 52-week high [1] - The average volume of shares traded in the last three months was 0.4 million [2] Valuation Metrics - The price-to-book value of EverQuote is 4.94X, significantly higher than the industry average of 2.05X, indicating an expensive valuation [4] - Other multi-line insurers are trading at a discount to the industry average, suggesting a relative overvaluation for EverQuote [4] Growth Projections - EverQuote's return on equity (ROE) stands at 36.9%, well above the industry's 14.7%, reflecting strong operational efficiency [7][13] - The Zacks Consensus Estimate for EverQuote's 2025 earnings per share indicates a year-over-year increase of 47.7%, with revenues projected to reach $644.9 million, implying a 28.9% improvement [8] - Analysts have raised earnings estimates for 2025 and 2026, with a 10.2% increase for 2025 and a 5.7% increase for 2026 over the past week [9] Analyst Sentiment - The average price target from six analysts for EverQuote is $34 per share, suggesting a potential upside of 43.2% from the last closing price [10] Operational Insights - EverQuote is benefiting from rising consumer quote requests and is focused on enhancing platform capabilities and expanding data assets to attract more consumers [14] - The company anticipates strong revenue growth in its health direct-to-consumer agency during the annual health open enrollment period [15] Challenges - Despite positive momentum, EverQuote faces rising expenses due to increased costs in revenues, sales and marketing, R&D, and G&A [16] - The company operates in a competitive market with potential regulatory risks that could impact revenue and growth [16][17]