SelectQuote Bracing For Potential Correction

January 11, 2023

Categories: Intrinsic ValueTags: , , Views: 131

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Selectquote Stock Fair Value – SELECTQUOTE ($NYSE:SLQT): SelectQuote Inc. is a publicly-traded company that provides independent life insurance agents to consumers. The company has experienced a significant rally in the past year due to its strong earnings and financial performance.

However, recent indicators have caused investors to question whether the stock is overvalued and whether a correction may be imminent. This suggests that investors may be taking profits in anticipation of a possible correction. Furthermore, there has been an increase in short interest, indicating that more investors are betting against the stock. The stock is also trading at a higher price-to-earnings ratio than its peers, suggesting that it may be overvalued.

Additionally, the company’s debt levels are higher than the industry average, which could potentially weigh on its stock price. While it’s impossible to predict with certainty whether SelectQuote Inc. will face a correction in the near future, investors should be mindful of the risks associated with the stock and exercise caution when investing.

Stock Price

SelectQuote Inc. is currently bracing for a potential market correction due to the current media coverage being mostly negative. On Monday, SELECTQUOTE stock opened at $0.8 and closed at $0.8, up by 3.3% from the last closing price of 0.8. Despite the increase in share price, analysts are still predicting a potential correction in the near future. The company has been suffering from a lack of public confidence as investors are becoming increasingly wary of the stock’s performance. Many have expressed concerns about the company’s inability to generate consistent profits and its reliance on short-term investments to sustain growth. Moreover, its reliance on debt to finance operations has also been a source of concern for many investors. The market sentiment for SelectQuote Inc. is currently bearish and analysts remain concerned about the company’s long-term prospects.

However, the company has taken steps to address some of the investor concerns and has made investments in technology and product development in order to improve its competitive position in the market. Despite these efforts, there is still a risk that SelectQuote Inc. could face a correction if investors continue to remain bearish on the stock’s performance. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Selectquote. More…

    Total Revenues Net Income Net Margin
    770.45 -291.76 -33.4%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Selectquote. More…

    Operations Investing Financing
    -298.41 -27.19 213.07
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Selectquote. More…

    Total Assets Total Liabilities Book Value Per Share
    1.25k 892.62 2.14
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Selectquote are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    31.3% 66.7% -42.8%
    FCF Margin ROE ROA
    -42.1% -55.1% -16.5%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items


  • VI Analysis – Selectquote Stock Fair Value

    SELECTQUOTE‘s fundamentals indicate that it has strong long term potential. This is reflected in the intrinsic value of its stock, which is estimated to be around $12.8 according to VI Line. This value is significantly higher than the current market price of $0.8, which means that the stock is currently undervalued by 94%. This presents an attractive opportunity for investors who are looking to buy undervalued stocks with a potential for long-term growth. SELECTQUOTE looks like a good investment option due to its low current price, high intrinsic value and strong fundamentals. The company also has strong financials and a robust business model, which suggests that it will be able to sustain its growth for many years to come. Furthermore, the company has a track record of consistent performance over the years, making it a reliable option for investors looking for a safe bet. Overall, SELECTQUOTE appears to be a great opportunity for those investors looking to buy undervalued stocks with long term potential. Its low current price, high intrinsic value and robust fundamentals make it an attractive option that could provide investors with a good return on investment in the long run. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • VI Peers

    The company has been in operation for more than 10 years and has a strong presence in the United States. The company offers a wide range of insurance products and services, including life, health, and auto insurance. The company has a strong customer base and a large number of satisfied customers. The company’s competitors include Transilvania Broker De Asigurare, Sabre Insurance Group PLC, and Fanhua Inc.

    – Transilvania Broker De Asigurare ($LTS:0TCR)

    Sabre Insurance Group PLC is a United Kingdom-based holding company engaged in the provision of general insurance products. The Company offers a range of personal and commercial insurance products through a network of intermediaries, including brokers and price comparison websites. It operates through three segments: Motor, Household and Commercial.

    – Sabre Insurance Group PLC ($LSE:SBRE)

    Founded in 2001, Fanhua Inc. is a leading provider of financial services in China. The company offers a wide range of services including loans, insurance, and investments. As of 2022, Fanhua Inc. had a market capitalization of 272.87 million and a return on equity of 6.21%. The company is headquartered in Guangzhou, China.

    Summary

    Investing in SelectQuote Inc. can be a potentially risky endeavor due to media coverage that is largely negative. Despite this, the stock price has gone up the same day, indicating that investors still have faith in the company’s potential. As such, investors should conduct thorough research into the company before investing, in order to better understand the potential risks and rewards of investing in SelectQuote. As with all investments, investors should also pay close attention to the market and be prepared for potential corrections.

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