SelectQuote (SLQT) stock has seen a 54% increase this year, with analysts predicting huge gains.

From Nasdaq: 2024-10-09 09:44:00

In 2024, large-cap insurance stocks in the US and Canada region are performing well, with all showing positive returns and the iShares U.S. Insurance ETF (IAK) achieving nearly 29% total return. Progressive (PGR) stock is up over 50%, reflecting industry success.

SelectQuote (SLQT) has seen a 54% increase in shares this year. Analysts give it an average price target of $4.50, indicating a potential 113% rise from the $2.11 level. The company’s use of technology and skilled agents sets it apart in the direct-to-consumer insurance platform.

SelectQuote’s healthcare services, including SelectRx pharmacy, are driving growth with a 680% revenue increase in two years. Despite significant costs, the business segment has helped reduce the company’s loss per share in fiscal 2024 to $0.20 from $1.81 in 2022.

With a reasonable valuation and expectations of revenue growth slowing to around 10% next year, SelectQuote remains a solid model for profitability. Concerns arise from a potential 10% decrease in adjusted EBITDA due to a change in commissions structure with a key insurance company, but the company believes this is a temporary setback.



Read more at Nasdaq:: Is SelectQuote a Double-Bagger Stock? Analysts Predict Huge Gains