Hagerty is the insurance play that is attracting JP Morgan analysts

Some industries refuse to change and invest in innovative technologies; Sometimes it helps and helps to adopt an “if it ain’t broke, don’t fix it” mentality; However, sometimes, it can severely limit the growth and competitiveness that a company can maintain. Auto insurance is one such industry.

This is why finding stocks that can offer a refreshing insight into the industry and revolutionize its services can be very profitable for you. You migrated New York Stock Exchange: Hughty It is one of these stocks; It brings together a comprehensive list of services all centered around the automotive industry, from insurance to enthusiast services and much more.

As you’ll soon discover, there’s a good reason why analysts at… JPMorgan Chase & Co New York Stock Exchange: JPM Initiate coverage on this stock with an attractive target price. And more, you’ll learn why to view the home at Goldman Sachs Group New York Stock Exchange: A It could also serve as a tailwind that pushes Hagerty’s potential higher.

Set the bar high

Hagerty is digitizing the insurance industry and bringing together all the auto services you can think of in one place. I’m thinking of Amazon.com Nasdaq: AMZN Bring together all marketplaces in one platform to create a massive online auction for almost any item category.

This company offers its customers insurance for their cars. However, what’s more, it allows everyday car owners to find solutions in the market. Looking for a car? You can go to Hagerty and find fish that fit your criteria at their online auction services. If you need to sell your car, visit their appraisal services to get a fair price assessment.

But wait there’s more. By joining their driver club, you also get benefits like roadside services, member experiences like car pools and meetups, online content and more. Well, far from sounding like a sales pitch, this shows that perhaps management is taking a page from Amazon’s book.

You can confirm this sentiment by realizing that they have also struck a deal with Samsung TV for premium car content. Yes, this is very similar to the Prime streaming services. How does the market feel about this combination of services in one stock?

In terms of price action, you won’t get much history as this stock goes IPO (initial public offering) in 2021. In this case, you’ll need to focus on alternative market language through forecasts and valuations. So, here nothing goes.

Connecting the dots

So, look, you can’t go out and add a stock to your watchlist just because it paints a pretty picture; You need to do some research to make sure the numbers match the picture. You can find some of the points you need to communicate in the company’s latest quarterly results.

Starting at the top, revenue growth of 27.0% sets the pace for this company’s momentum. And management is only pushing its forecasts higher from where they were before, which still includes double-digit revenue growth and higher expected additions to its membership programs.

Do you remember Goldman Sachs’ forecasts for 2024? These people see the US manufacturing sector being driven by potential interest rate cuts from the Federal Reserve coming soon, which can only mean boom times for the auto and insurance industries.

Given that these forecasts by management were made before the Fed announced its new path, this stock may outperform. But don’t take this fact too seriously; Check with Wall Street and the market itself.

Since this stock is relatively new to the market, not many analysts have an opinion on it. but Trust Financial New York Stock Exchange: TFC, as well as JP Morgan analysts, have an optimistic view. With stock price targets of $11.0 and $9.0 respectively, Hagerty’s average upside is 27.2% today.

Knowing what you know now and understanding the fundamental winds that could push this stock higher, it should come as no surprise to learn that these same analysts see a huge jump in EPS. Over the next twelve months, EPS is expected to rise by as much as 180.0%!

And don’t forget that the view that inflation is “higher for longer” in the US will only drive up the cost of insurance, as well as car prices. So, whether via auction, transaction services, or premiums, Hagerty stock can be cheap enough to provide you with some potential protection and upside.

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