Heritage Insurance Holdings (HRTG) Stock

Heritage Insurance Holdings has seen a 126% stock increase over the past year due to mostly positive earnings reports. Initially identified as undervalued, Heritage's strategic growth initiatives have driven significant stock gains. Continued positive performance and earnings reports justify a favorable rating for Heritage Insurance Holdings.

While the top- and bottom-line numbers for Heritage Insurance (HRTG) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Heritage Insurance (HRTG) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.28 per share a year ago.

Heritage Insurance's third-quarter results are likely to reflect improving premiums offset by higher catastrophe losses.

Recently, HRTG has experienced corrections due to the storm season and unfavorable news coverage. My analysis of its intrinsic value emphasizes long-term fundamentals and its float. The float, money held by HRTG but not owned, has shown steady growth, indicating value creation through the income generated from investing that float. When considering only the float as the source of value, HRTG trades at a discount. Additional upside could come from its earning potential in underwriting and fee income.

Its growing commercial residential business, expanding E&S business and improving pricing to deliver better margins and boost earnings make HRTG worth betting on.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Amid heightened market volatility investors may want to consider several insurance stocks that have made their way onto the coveted Zacks Rank #1 (Strong Buy) list.

Growing commercial residential business and E&S business, and improving pricing make HRTG stock worth betting on.