Shares of HCI Group (HCI) have been strong performers lately, with the stock up 13.3% over the past month. The stock hit a new 52-week high of $180.47 in the previous session. HCI Group has gained 50.1% since the start of the year compared to the 11.9% gain for the Zacks Finance sector and the 8% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 7, 2025, HCI Group reported EPS of $5.18 versus consensus estimate of $4.47.
For the current fiscal year, HCI Group is expected to post earnings of $16.32 per share on $891.62 in revenues. This represents a 120.24% change in EPS on a 18.87% change in revenues. For the next fiscal year, the company is expected to earn $15.58 per share on $928.75 in revenues. This represents a year-over-year change of -4.53% and 4.16%, respectively.
Valuation Metrics
Though HCI Group has recently hit a 52-week high, what is next for HCI Group? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
HCI Group has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 21X versus its peer group's average of 12.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making HCI Group an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, HCI Group currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if HCI Group passes the test. Thus, it seems as though HCI Group shares could have potential in the weeks and months to come.
How Does HCI Stack Up to the Competition?
Shares of HCI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Progressive Corporation (PGR). PGR has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. The Progressive Corporation beat our consensus estimate by 10.16%, and for the current fiscal year, PGR is expected to post earnings of $17.68 per share on revenue of $87.44 billion.
Shares of The Progressive Corporation have gained 0.4% over the past month, and currently trade at a forward P/E of 13.91X and a P/CF of 16.9X.
The Insurance - Property and Casualty industry is in the top 15% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HCI and PGR, even beyond their own solid fundamental situation.
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HCI Group, Inc. (HCI): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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