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Should You Retain Trupanion Stock in Your Portfolio?
Trupanion, Inc. (NASDAQ: TRUP) has been benefiting from a focus on pet health and well-being in an underpenetrated pet insurance market, product launches, extended operating boundaries, as well as sufficient liquidity.
Growth Projections
The Zacks Consensus Estimate for Trupanion's 2024 earnings per share indicates an increase of 57.4% from the year-ago reported number. The consensus estimate for revenues is pegged at $1.26 billion, implying a year-over-year improvement of 13.7%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 95.4% and 6.5%, respectively, from the corresponding 2024 estimates.
The expected long-term earnings growth rate is 39.3% compared with the industry average of 17.1%.
Zacks Rank & Price Performance
Trupanion currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 4.9% compared with the industry's growth of 21.6%.
Image Source: Zacks Investment Research
Earnings Surprise History
Trupanion has a decent earnings surprise history. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 43.13%.
Business Tailwinds
This provider of insurance for cats and dogs operates in a large but underpenetrated market. Management noted that less than 5% of the pets are insured in North America and a very low number across most of Europe. There is immense scope as there has been a change in ...