Lemonade (NYSE: LMND) stock has doubled in the past year, driven by its machine learning-driven insurance platform. It’s set to provide Q4 earnings on Feb. 19. The company is attracting customers at a rapid pace and has seen a decline in its loss ratio due to machine learning improvements.

While Lemonade is seeing strong growth, its stock price is becoming expensive, trading at a price-to-sales ratio of 9. Insiders have been selling, causing the stock to slide in recent weeks. The upcoming earnings report could bring volatility, making it a risky investment.

Despite the potential risks, Lemonade’s long-term success strategy is working, with management expecting to reach profitability on an adjusted EBITDA basis by the end of the year. Investors with a long time horizon and risk tolerance may find an opportunity to buy now.

The Motley Fool Stock Advisor team did not include Lemonade in their top 10 stock picks, highlighting other investment opportunities with potential for high returns. The history of their recommendations shows significant returns for investors who followed their advice on past picks.

Read more at Yahoo Finance: Should You Buy Lemonade Stock Before Feb. 19?