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Here's Why HCI Group (HCI) Fell More Than Broader Market

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HCI Group (HCI - Free Report) closed the most recent trading day at $117.91, moving -1.12% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.43%. On the other hand, the Dow registered a loss of 1.01%, and the technology-centric Nasdaq decreased by 0.47%.

The property and casualty insurance holding company's stock has dropped by 5.03% in the past month, falling short of the Finance sector's gain of 3.13% and the S&P 500's gain of 2.6%.

Market participants will be closely following the financial results of HCI Group in its upcoming release. The company plans to announce its earnings on February 27, 2025. It is anticipated that the company will report an EPS of -$2.75, marking a 185.4% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $163.88 million, showing a 0.74% escalation compared to the year-ago quarter.

Investors might also notice recent changes to analyst estimates for HCI Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. HCI Group is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that HCI Group has a Forward P/E ratio of 8.83 right now. This expresses a discount compared to the average Forward P/E of 10.99 of its industry.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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