UNIVERSAL INSURANCE HOLDINGS INC (UVE) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Universal Insurance Holdings (UVE)? Shares have been on the move with the stock up 17% over the past month. The stock hit a new 52-week high of $35.32 in the previous session. Universal Insurance has gained 66.1% since the start of the year compared to the 14.6% gain for the Zacks Finance sector and the 8.6% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 23, 2025, Universal Insurance reported EPS of $1.36 versus consensus estimate of $1.1.For the current fiscal year, Universal Insurance is expected to post earnings of $4.63 per share on $1.57 in revenues. This represents a 158.66% change in EPS on a 3.19% change in revenues. For the next fiscal year, the company is expected to earn $3.34 per share on $1.51 in revenues. This represents a year-over-year change of -27.86% and -3.69%, respectively.Valuation MetricsThough Universal Insurance has recently hit a 52-week high, what is next for Universal Insurance? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Universal Insurance has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 7.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11X. On a trailing cash flow basis, the stock currently trades at 15.7X versus its peer group's average of 13X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Universal Insurance an interesting choice for value investors.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Universal Insurance currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.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 Universal Insurance fits the bill. Thus, it seems as though Universal Insurance shares could have a bit more room to run in the near term.How Does UVE Stack Up to the Competition?Shares of UVE 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 B, and a Momentum Score of B.Earnings were strong last quarter. Heritage Insurance Holdings, Inc. beat our consensus estimate by 207.55%, and for the current fiscal year, HRTG is expected to post earnings of $4.40 per share on revenue of $844.62 million.Shares of Heritage Insurance Holdings, Inc. have gained 6.1% over the past month, and currently trade at a forward P/E of 5.75X and a P/CF of 13.04X.The Insurance - Property and Casualty industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for UVE and HRTG, even beyond their own solid fundamental situation.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 UNIVERSAL INSURANCE HOLDINGS INC (UVE): 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