Is Trupanion (TRUP) a Buy Post Earnings?

Trupanion, Inc. (NASDAQ:TRUP) is one of the best pet stocks to buy according to hedge funds. On February 13, Stifel cut the price target on Trupanion, Inc. (NASDAQ:TRUP) to $35 from $38 while maintaining a Hold rating on the shares. The same day, Piper Sandler also revised the price target on the stock to $45 from $60 while keeping an Overweight rating on the shares. The firm told investors that the company beat both its and the Street’s estimates on earnings, along with the Street’s on revenues, with loss ratios at a record and retention further experiencing improvement. It added that there was a seasonal deceleration, which typically occurs due to weather and holiday-related disruptions when moving to fiscal Q4 from fiscal Q3.

Piper further stated that it believes inventors may focus on deceleration in revenue growth due to the current overall focus on companies involved with product distribution and the role of AI disruption in their business in the future. A lower rate of revenue growth does not help dislodge this notion, according to the firm.

Trupanion, Inc. (NASDAQ:TRUP) provides medical insurance for cats and dogs. The company’s operations are divided into the Subscription Business and Other Business segments, with the Subscription Business segment involved in the monthly subscriptions of pet medical insurance, while the Other Business segment covers organizations or companies choosing to offer medical insurance for dogs and cats as a benefit to their members or employees.

While we acknowledge the potential of TRUP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.