- EVER beat Q1 earnings revenue expectations by 2.6%, up 28% YoY.
- Shares are down more than 45% from the 52-week high.
- Earnings arrived just two weeks after Everquote shares saw the death cross on the daily chart.
Online insurance marketplace Everquote (Nasdaq:EVER) beat revenue expectations for the quarter ending in March, but it waits to be seen whether the market will continue ignoring such good news.
Since EVER’s high in July 2020 at $63.44, the stock has fallen more than 45%.
Reporting after the market closed on Monday, May 3, Everquote announced revenue of $103.8 million, 2.6% above consensus, and an adjusted earnings loss of $0.13. At 28% above last year’s revenue for the quarter, the results show Everquote is not losing momentum on the fundamental front.
Since 2017, EVER has reported consecutive annual revenue growth of 29%, 52% and 39%. During the March quarter, non-auto insurance jumped a whopping 41% YoY.
Based on the trailing 12 months, EVER is now selling for just 2.7 times revenue, what would appear a steal for a digital platform with solid sales growth.
Analysts seem to think so as well. With semi-recent “outperform” ratings from Oppenheimer and Raymond James, consensus places the price target at $61.58, a 79% premium above Monday’s close.
Everquote technical chart: Death cross darkens the outlook
Traders can be forgiven for not jumping all over this puppy. After all, April 20 saw the dreaded knell of the death cross pattern, wherein the 50-day SMA dropped below the 200-day Simple Moving Average (SMA). In fact, this was the second time after it transpired earlier in September 2020.
At the moment, however, EVER shares are consolidating in the same demand zone – stretching from $31.50 to $36.25 – that buoyed them once before. If they break through the lower bound, the next support region is around $30 from January 2020.
Below that, shares could fall the whole way to the March 2020 low near $23.
EVER 1-day chart
On the upside, the 100 and 200-day SMAs are colliding at $40, meaning this could act as stiff resistance for bulls.
Before that, the local high from early April sits at $38.54.
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