Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) is currently trading at a discount compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 1.42X, lower than the industry average of 1.62X and the broader sector's 3.8X [1] Company Overview - HRTG has a market capitalization of $362.4 million and an average trading volume of 0.5 million shares over the last three months [2] Valuation Comparison - HRTG shares are attractively valued compared to NMI Holdings (NMIH) but are considered expensive when compared to MGIC Investment Corporation (MTG) and Radian Group (RDN) [3] Stock Performance - HRTG shares have increased by 82.5% over the past three months, outperforming its industry, sector, and the Zacks S&P 500 composite during the same period [4] Technical Indicators - HRTG shares are trading well above the 50-day moving average, indicating a bullish trend [6] Analyst Sentiment - Positive sentiment is reflected as two analysts have raised earnings estimates for 2024 and 2025 by 33.1% and 26.7%, respectively, over the past 60 days [8] Growth Drivers - Key growth factors for HRTG include rate adequacy, selective underwriting, and limiting new business in over-concentrated markets. The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability [9] - HRTG's excess and supply (E&S) business has shown strong performance in states like California, Florida, and South Carolina, with plans to explore growth opportunities in more states [11] Financial Management - HRTG has a solid reinsurance program to protect its balance sheet, especially against coastal risks. Improvements in this program and growing gross premiums are expected to lower the ceded premium ratio [12] - The company has suspended dividend payments to strengthen its financial position and is investing in technology and high-potential segments [12] Profitability Metrics - HRTG's return on equity in the trailing 12 months was 26.3%, significantly higher than the industry average of 8% [13] - The return on invested capital (ROIC) for HRTG was 17.2%, also above the industry average of 6.1%, indicating effective fund utilization [14] Investment Outlook - HRTG's focus on organic growth in its commercial and residential business, along with improvements in pricing and margins, positions it well for future growth. The company currently holds a Zacks Rank 1 (Strong Buy) [16][17]

Some investors prefer to target small-cap stocks, as their growth potential is undoubtedly hard to ignore. After all, don't we all dream of getting in early on the next big thing? Of course, it's critical for investors to realize the higher volatility nature of small-caps, as they are less liquid and more sensitive to monetary policy. For those interested in the idea, two small-caps – Heritage Insurance (HRTG) and EZCORP (EZPW) – sport favorable growth profiles paired with positive Zacks Ranks. Let's take a ...

Friday's mixed jobs report extended the broader selloff in markets this week with September known to be the most volatile month of the year. 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. Specifically, three of these highly ranked insurance stocks hail from the Zacks Insurance-Property and Casualty Industry which is currently in the top 18% of over 250 Zacks industries. Considering insurance ...

Shares of Heritage Insurance Holdings, Inc. (HRTG) closed at $16.24 on Tuesday, near its 52-week high of $16.55, after having gained 149.2% year to date. Shares outperformed the industry, the Finance sector as well as the Zacks S&P 500 composite index in the same time frame. This super-regional U.S. property and casualty insurance holding company delivered an earnings surprise in three of the last four quarters, while missed in one. Prudent underwriting execution and rate adequacy initiatives pursued over t ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

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. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leavin ...

imagedepotpro/iStock via Getty Images Thesis Today, I wanted to cover Heritage Insurance Holdings, Inc. (HRTG), a somewhat speculative and controversial stock that has not had any analytical updates for over three months. However, there have been several catalysts of late. For starters, the "action" in this stock, based on both technicals and comments from readers, currently suggests categorizing this as a "trading" stock for many readers rather than a long-term investment for others. I want to be clear tha ...

After reaching an important support level, Heritage Insurance Holdings, Inc. (HRTG) could be a good stock pick from a technical perspective. HRTG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a ...

Relative strength focuses on stocks that have performed well compared to a relevant benchmark. For our purposes, the S&P 500 will be the benchmark. By targeting those displaying this favorable price action, investors can participate in positive market trends where buyers are in control. Recently, several top-ranked finance stocks have shown precisely that. Heritage Insurance (HRTG) , EZCORP (EZPW) , and Erie Indemnity (ERIE) have all enjoyed positive price action over the last month, as illustrated below. B ...

As of Aug 13, 2024, two stocks in the financials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions. The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Be ...