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Here's Why HCI Group (HCI) Gained But Lagged the Market Today

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In the latest trading session, HCI Group (HCI - Free Report) closed at $121.75, marking a +0.29% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.

Shares of the property and casualty insurance holding company have appreciated by 9.12% over the course of the past month, outperforming the Finance sector's loss of 0.44% and the S&P 500's loss of 2.14%.

Market participants will be closely following the financial results of HCI Group in its upcoming release. The company's earnings per share (EPS) are projected to be -$2.75, reflecting a 185.4% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $163.88 million, up 0.74% from the year-ago period.

Investors might also notice recent changes to analyst estimates for HCI Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. HCI Group presently features a Zacks Rank of #3 (Hold).

Looking at valuation, HCI Group is presently trading at a Forward P/E ratio of 8.99. This represents a discount compared to its industry's average Forward P/E of 11.68.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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