Knowing facts before you bet on it

HCI group (Hci) was recently on the list of the most sought -after stocks from Zacks.com. Therefore, you may want to take some of the key factors into account that could influence the performance of the share in the near future.

Last month, the shares of this real estate and accident insurance company +1% returned, compared to the changes in the Zack S&P 500 Composite -0.7%. During this time, the Zacks Insurance – real estate and accident industry, which the HCI Group falls, lost 0.5%. The key question now is: What could be the future direction of the stock?

Although media reports or rumors about a significant change in the business prospects of a company generally lead to the fact that its shares lead to trend and an immediate change in price, there are always certain basic factors that ultimately advance the purchase and hate decision.

Here at Zacks we prioritize the evaluation of the change in the projection of the future income of a company above all. This is because we believe that the current value of his future profit current determines the current value for its shares.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

For the current quarter, the HCI Group is expected to make a profit of $ 4.49 per share, which indicates a change of +23% compared to the previous year. The Zacks Consensus estimate has remained unchanged in the last 30 days.

For the current financial year, the consensus estimate of $ 14.98 refers to a change of +102.2% compared to the previous year. This estimate has remained unchanged in the past 30 days.

For the next financial year, the consensus estimate of $ 13.70 shows a change of -8.6% compared to what the HCI group is expected a year ago. The estimate remained unchanged last month.

Our proprietary stock assessment tool, The Zacks Rank, offers a strong externally tested track record and offers a more conclusive picture of the price direction of a share at short notice, as it effectively uses the power of profits. Due to the size of the recent change in the consensus estimate and three other factors in connection with profit estimates, the HCI group with Zacks ranked # 2 (purchase) is assessed.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for HCI _12Monthepscharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

In the case of the HCI group, the consensus sales of $ 210.17 million for the current quarter refers to a change of +1.7%a year compared to the previous year. The estimates between $ 881.26 million and $ 930.68 million for the current and next financial years indicate changes of +17.5% or +5.6%.

The HCI Group reported sales of $ 161.88 million in the last reported quarter, which corresponds to a change of -0.5%compared to the previous year. EPS of $ 0.31 for the same period comparable to USD 3.22 a year ago.

Compared to the Zacks Consensus estimate of $ 163.88 million, the registered income is a surprise of -1.22%. The EPS surprise was +111.27%.

The company defeated consensus -epseps estimates in each of the following four quarters. The company led the consensus sales estimates twice during this period.

No investment decision can be efficient without taking into account the evaluation of a share. Whether the current price of a share rightly reflects the internal value of the underlying business and the growth prospects of the company is an essential determinant for future price -performance.

The comparison of the current value of the valuation multipliers of a company, such as

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

The HCI Group is an A value on this front, which indicates that it acts with a discount for his colleagues. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the HCI group or not. However, his Zack's rank #2 suggests that he can exceed the wider market at short notice.

Would you like the latest recommendations from Zack's Investment Research? Today you can download 7 best stocks for the next 30 days. Click here to receive this free report

HCI Group, Inc. (HCI): Report on free stock analysis

This article was originally published in Zack's Investment Research (Zacks.com).

Zacks Investment Research

Leave a Comment Cancel reply