Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) is experiencing a bullish trend in its stock performance, supported by strong year-to-date growth and favorable technical indicators [1][4]. Company Performance - HRTG shares have increased by 76.1% year to date, significantly outperforming the industry growth of 24.6%, the Finance sector's return of 16%, and the Zacks S&P 500 composite's rise of 24% [4]. - The average target price for HRTG is set at 16.00pershare,indicatingapotentialupsideof39.410 million, although its debt has increased by 2.4% as of September 30, 2024, which is unfavorable compared to industry averages [12]. Return on Capital - HRTG's return on equity over the trailing 12 months was 29.2%, significantly higher than the industry average of 7.6% [13]. - The return on invested capital (ROIC) for HRTG was 19.7%, also exceeding the industry average of 5.8% [13]. Valuation - HRTG's stock is currently undervalued, trading at a price-to-book multiple of 1.26, lower than the industry average of 1.51 [14]. - The company has a Value Score of A, indicating strong valuation metrics compared to peers [14]. Growth Prospects - The company is expected to benefit from a growing commercial residential business, improved E&S business, better pricing, and expanding margins, which bode well for future growth [15].
Heritage Insurance (HRTG) ZACKS·2024-12-19 18:00