HCI Group, Inc. (HCI) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of HCI Group (HCI)? Shares have been on the move with the stock up 14% over the past month. The stock hit a new 52-week high of $176.4 in the previous session. HCI Group has gained 43.4% since the start of the year compared to the 2.7% move for the Zacks Finance sector and the 12.4% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has an impressive 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 May 8, 2025, HCI Group reported EPS of $5.35 versus consensus estimate of $4.49 while it beat the consensus revenue estimate by 2.98%.For the current fiscal year, HCI Group is expected to post earnings of $14.98 per share on $881.26 million in revenues. This represents a 102.16% change in EPS on a 17.49% change in revenues. For the next fiscal year, the company is expected to earn $13.95 per share on $930.68 million in revenues. This represents a year-over-year change of -6.9% and 5.61%, respectively.Valuation MetricsHCI Group may be at a 52-week high right now, but what might the future hold for the stock? 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 these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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 B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 11.2X 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 20.1X versus its peer group's average of 12.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, HCI Group currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.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 fits the bill. Thus, it seems as though HCI Group shares could still be poised for more gains ahead.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 Heritage Insurance Holdings, Inc. (HRTG). HRTG has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Heritage Insurance Holdings, Inc. beat our consensus estimate by 115.22%, and for the current fiscal year, HRTG is expected to post earnings of $3.25 per share on revenue of $854.9 million.Shares of Heritage Insurance Holdings, Inc. have gained 60.3% over the past month, and currently trade at a forward P/E of 8.02X and a P/CF of 11.49X.The Insurance - Property and Casualty industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HCI and HRTG, even beyond their own solid fundamental situation.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HCI Group, Inc. (HCI): Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks