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HCI Group (HCI) Increases Yet Falls Behind Market: What Investors Need to Know

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HCI Group (HCI - Free Report) closed the latest trading day at $111.65, indicating a +0.21% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 0.33%.

The the stock of property and casualty insurance holding company has risen by 14.55% in the past month, leading the Finance sector's loss of 4.31% and the S&P 500's gain of 5.36%.

The investment community will be paying close attention to the earnings performance of HCI Group in its upcoming release. The company is expected to report EPS of $1.56, up 10.64% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $200.25 million, indicating a 52.12% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.56 per share and revenue of $806.34 million, indicating changes of +69.5% and +46.43%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for HCI Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.51% higher within the past month. HCI Group presently features a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that HCI Group has a Forward P/E ratio of 8.87 right now. For comparison, its industry has an average Forward P/E of 13.56, which means HCI Group is trading at a discount to the group.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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