HIPPO HOLDINGS INC (NYSE:HIPO): A Growth Stock Aligned with Navellier's "Little Book" Standards

A methodical way to approach growth investing can help investors find companies with good prospects for increase. One recognized system comes from Louis Navellier's "The Little Book That Makes You Rich," which lists eight particular standards for choosing excellent growth stocks. These guidelines concentrate on earnings adjustments, positive surprises, revenue and profit increase, margin improvement, cash flow creation, profit speed, and return on equity. This structure helps investors locate companies showing basic business health and good operational speed.

Fitting the Little Book Standards

Hippo Holdings Inc (NYSE:HIPO) displays good agreement with a number of important ideas from Navellier's growth investing plan. The company's basic measurements show notable gains in several areas that growth investors usually look for.

The insurance technology firm displays especially good results in fields Navellier highlights:

• Earnings adjustments: Next-quarter EPS projections have been adjusted higher by 719% over the last three months, showing good analyst belief
• Earnings surprises: The company has exceeded EPS projections in three of the previous four quarters with a typical surprise of 215%
• Sales increase: Revenue has increased 34.5% year-over-year with quarterly revenue rising 26.3%
• Operating margin improvement: Operating margins have improved by 79.2% over the last year
• Earnings increase: Quarterly EPS has increased 662.7% year-over-year with TTM EPS up 165.7%

Basic Review Summary

According to ChartMill's detailed basic review, HIPO gets a total score of 4 out of 10. The review shows a varied situation with several significant positive points. The company displays very good growth features with strong past revenue growth of 60.7% on average over recent years and projected EPS growth of 44.3% each year in the future. Price assessment seems fair with a P/E ratio of 9.3, much lower than the S&P 500 average of 26.3.

The company's financial condition rates sufficiently with good cash ratios that do better than 95% of industry counterparts, although the Altman-Z score indicates some default danger. Earnings ability continues to be a worry in spite of getting better margins, as the company has recorded negative profits in recent years. The high return on equity of 22.8% is noticeable as particularly good, beating almost 90% of insurance industry rivals.

Growth Investor Points

For investors using Navellier's system, HIPO offers an engaging example of growth investing ideas. The company's large upward earnings adjustments and steady earnings surprises match exactly with Navellier's focus on positive analyst opinion and operational overachievement. The improving operating margins show getting better operational effectiveness even while revenue increases quickly, meeting another important standard in the Little Book structure.

The mix of speeding up revenue growth, improving margins, and good cash flow growth (90.3% over the last year) makes the kind of basic speed that growth investors usually want. While the company's earnings history stays difficult, the striking gains in recent quarters and good future growth projections indicate the company could be reaching a turning point.

Looking for More Options

Investors wanting to find more companies that fit the Little Book standards can view the full screening results to locate other possible growth choices. The filter can be changed based on individual risk acceptance and investment goals, allowing for both stricter and less strict use of Navellier's eight rules depending on market situations and personal choice.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or recommendation to buy or sell any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.