EverQuote Inc - Class A (NASDAQ:EVER) – A Strong Growth Contender for Little Book Investors

EverQuote Inc (NASDAQ:EVER) stands out as a compelling candidate for investors following Louis Navellier’s growth strategy outlined in The Little Book That Makes You Rich. The company, which operates an online insurance marketplace, meets several key criteria for high-growth stocks, including strong earnings momentum, accelerating revenue, and improving profitability.

Key Strengths Aligning with Navellier’s Growth Rules

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 141.6% over the past three months. EVER has also delivered four consecutive positive earnings surprises, with an average beat of 169.5%—far exceeding the 10% threshold set in Navellier’s strategy.
• Revenue Growth: Sales growth remains robust, with year-over-year revenue up 73.7% and quarter-over-quarter growth at 83%, indicating strong demand for its platform.
• Operating Margin Expansion: The company’s operating margin improved by 164.2% over the past year, reflecting better cost efficiency as revenue scales.
• Cash Flow Strength: Free cash flow surged by 1,036.6% year-over-year, a sign of financial health and flexibility.
• Earnings Momentum: Quarterly EPS growth accelerated to 320%, significantly outpacing the 162.5% growth from the same quarter a year ago.
• High Return on Equity: EVER’s ROE of 23.8% ranks in the top percentile of its industry, demonstrating effective capital allocation.

Fundamental Health Check

According to ChartMill’s fundamental report, EVER scores 6 out of 10, with strengths in liquidity and solvency (score: 8) and solid growth metrics (score: 6). The company carries no debt, and its Altman-Z score of 8.91 suggests low bankruptcy risk. While profitability is rated average, the recent earnings surge and margin improvements signal potential for further upside.

Valuation Considerations

EVER trades at a P/E of 22.7, slightly below the S&P 500 average, while its forward P/E of 14.8 is more attractive compared to industry peers. The PEG ratio, accounting for expected EPS growth of 32.9%, suggests the stock is reasonably priced for its growth trajectory.

For investors seeking similar high-growth opportunities, our Little Book screener provides updated results based on Navellier’s criteria.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.