Key Takeaways MCYs top line witnessed a 7.6% CAGR from 2020-2024, supported by higher net premiums earned & other revenues.Net investment income has surged with a 15.7% CAGR over the past five years.MCYs net premiums written are driven by rate increases and rising policy counts in California auto.Shares of Mercury General Corporation (MCY) have gained 20.4% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite’s growth of 6.8%, 17.1% and 15.6%, respectively. Mercur ...

Core Insights - Palomar Holdings, Inc. (PLMR) shares have increased by 29.6% over the past year, outperforming the Finance sector and the Zacks S&P 500 composite, which grew by 18.3% and 17.2% respectively [1] - The company has a market capitalization of $3.29 billion and an average trading volume of 0.3 million shares over the last three months [1] Valuation - PLMR shares are trading at a price-to-book value of 3.89X, significantly higher than the industry average of 1.43X, indicating a premium valuation [2] - Other insurers such as The Allstate Corporation, Arch Capital Group Ltd., and The Progressive Corporation are also trading at multiples above the industry average [2] Growth Projections - The Zacks Consensus Estimate for PLMR's 2025 earnings per share indicates a year-over-year increase of 41.2%, with revenues projected to reach $799.63 million, reflecting a 45.5% increase [3] - For 2026, earnings per share and revenues are expected to grow by 17.4% and 25.5% respectively compared to 2025 estimates [3] Analyst Sentiment - Four out of six analysts covering PLMR have raised their earnings estimates for 2025, and four out of five have done so for 2026 in the past 30 days, leading to a 1.5% and 1.9% increase in consensus estimates for those years [5] Financial Guidance - Palomar Holdings has raised its 2025 adjusted net income guidance to a range of $198-$208 million, supported by rising policy volume and strong retention rates [7][16] - The company maintains a debt-free balance sheet and a strong capital position, which enhances its financial stability [7][15] Growth Drivers - The increasing volume of policies across various business lines, strong retention rates, and expansion into new geographic areas are expected to drive premium growth [13] - The company identifies Surety as a long-term growth opportunity, which is not correlated with traditional property and casualty insurance cycles, providing diversification [14] Investment Strategy - PLMR's return on equity stands at 20.3%, significantly higher than the industry average of 7.6%, indicating efficient utilization of shareholders' value [11] - The average target price for PLMR suggests a potential upside of 34.36% from the last closing price, based on short-term price targets from analysts [8]

Core Insights - EverQuote, Inc. (EVER) has seen a year-to-date share price increase of 26.9%, outperforming its industry, the Finance sector, and the Zacks S&P 500 Composite, which increased by 3.8%, 8.7%, and 5.9% respectively [1] - The company has a market capitalization of $934.25 million and an average trading volume of 0.5 million shares over the last three months [1] Stock Performance - EverQuote shares closed at $25.36, trading above the 50-day and 200-day simple moving averages of $24.29 and $21.86, indicating strong upward momentum [4] - The average price target from six analysts is $34.17 per share, suggesting a potential upside of 37.28% from the last closing price [8] Financial Metrics - EverQuote's price-to-book value stands at 6.06X, significantly higher than the industry average of 1.48X, indicating that shares are trading at a premium [5] - The company has achieved an average earnings surprise of 122.6% over the last four quarters, consistently surpassing earnings estimates [11] Growth Projections - The Zacks Consensus Estimate projects a 34.1% year-over-year increase in earnings per share for 2025, with revenues expected to reach $644.08 million, reflecting a 28.7% year-over-year improvement [10] - For 2026, earnings per share and revenues are estimated to increase by 10.8% and 19.4% respectively from 2025 estimates [10] Return on Capital - EverQuote's return on equity (ROE) for the trailing 12 months is 35.4%, significantly higher than the industry average of 14.9%, showcasing efficient use of shareholders' funds [13] - The return on invested capital for the same period is 34.7%, compared to the industry average of 2%, indicating strong income generation efficiency [13] Strategic Initiatives - The company is expanding into new verticals and anticipates rising quote requests to drive sustained growth [7] - The acquisition of PolicyFuel has enhanced EverQuote's access to the digital insurance distribution market, contributing to its growth strategy [16] - EverQuote expects improved Variable Marketing Dollars (VMD) due to lower advertising costs and higher revenue per quote request in the auto insurance sector [17] Market Position - Despite challenges in the auto insurance market, EverQuote is well-positioned to benefit from a potential recovery in carrier demand [15] - The company continues to focus on innovation in advertiser products and services, which is expected to drive sustained revenue growth [15]

Core Insights - Palomar Holdings, Inc. (PLMR) has seen its shares increase by 85.4% over the past year, significantly outperforming its industry and broader market indices [1] - The company has a market capitalization of $4.12 billion and an average trading volume of 0.3 million shares over the last three months [1] Stock Performance - PLMR shares closed at $154.25, trading above the 200-day simple moving average of $122.68, indicating strong upward momentum [2] Valuation Metrics - PLMR shares are trading at a price-to-book value of 5.22X, which is considerably higher than the industry average of 1.57X, indicating a premium valuation [3] Growth Projections - The Zacks Consensus Estimate projects a 39.2% year-over-year increase in earnings per share for 2025, with revenues expected to rise by 42.5% to $782.98 million [4] - For 2026, earnings per share and revenues are estimated to increase by 17% and 26.3%, respectively, compared to 2025 estimates [4] Analyst Sentiment - Four out of six analysts covering PLMR have raised their earnings estimates for 2025, and three out of five have done so for 2026 in the past 30 days, leading to a 2% and 1.5% increase in consensus estimates for those years [10] Financial Strength - PLMR maintains a debt-free balance sheet and a strong capital position, with an adjusted net income guidance raised to $186-$200 million for 2025 [9][18] - The company has a return on equity of 20.5%, significantly higher than the industry average of 7.8%, and a return on invested capital of 19.9%, compared to the industry average of 5.9% [13] Growth Drivers - Factors driving growth include increasing policy volumes, strong retention rates, geographic expansion, and new partnerships, with crop insurance projected to contribute around $200 million in premiums by 2025 [15] - The company identifies Surety as a long-term growth opportunity, which is not correlated with traditional property and casualty insurance cycles [16] Investment Strategy - PLMR's risk transfer strategy helps mitigate exposure to catastrophic events, contributing to a stable business model [20] - The average target price for PLMR shares is $183, suggesting a potential upside of 19.31% from the last closing price [11]

Core Insights - Kinsale Capital Group, Inc. (KNSL) shares have increased by 17.4% over the past year, slightly underperforming the Finance sector's growth of 18.2% and the industry growth of 17.5%, but outperforming the Zacks S&P 500 composite return of 9.5% [1] - The company has a market capitalization of $10.74 billion, with an average trading volume of 0.2 million shares over the last three months [4] Growth Projections - The Zacks Consensus Estimate for Kinsale Capital's 2025 earnings per share indicates a year-over-year increase of 10%, with revenues projected at $1.75 billion, reflecting a 10.2% improvement [5] - Earnings have grown by 44.3% over the past five years, surpassing the industry average of 20.8%, with a long-term earnings growth rate expected at 15%, compared to the industry average of 6.8% [6] Earnings Performance - Kinsale Capital has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 11.07% [7] Financial Metrics - The return on equity (ROE) for Kinsale Capital stands at 26.37%, significantly higher than the industry average of 7.8%, indicating efficient use of shareholders' funds [10] - The return on invested capital (ROIC) is reported at 22.7%, compared to the industry's 5.9%, reflecting effective capital utilization [11] Analyst Sentiment - Mixed analyst sentiment is observed, with six out of eight analysts raising estimates for 2025, while six out of seven have lowered estimates for 2026 over the past 60 days [12] Valuation - Kinsale Capital shares are currently trading at a price-to-book value of 6.79X, which is higher than the industry average of 1.55X, indicating a premium valuation [13] Price Target - The average price target for Kinsale Capital, based on short-term estimates from eight analysts, is $474.63 per share, suggesting a potential upside of 2.9% from the last closing price [14] Market Positioning - Kinsale Capital is well-positioned in the excess and surplus (E&S) market, benefiting from high retention rates and improved underwriting results compared to the broader P&C industry [16] - The company targets small to medium-sized accounts, which allows for better pricing and reduced competition, with management estimating low double-digit rate increases across its business [17] Operational Efficiency - Kinsale Capital's proprietary technology platform enhances operational efficiency and expense ratios, contributing to improved margins and lower loss ratios [18] - The company has maintained a free cash flow conversion rate exceeding 85% in recent quarters, reflecting stable earnings [19] Dividend and Share Repurchase - Kinsale Capital has a strong dividend history, with a seven-year CAGR of 12.1% from 2017 to 2024, and has authorized a share repurchase program of up to $100 million [21]