Hartford Insurance Group, is the IBD Stock Of The Day for Monday. HIG stock was among a group of insurers showing strength and constructive charts patterns while the overall market grinds through a sell-off.
Upheaval and uncertainty caused by, among other things, President Donald Trump's erratic trade policy have sent the Nasdaq and S&P 500 into correction territory. The Dow Jones Industrial Average is also nearing a correction. A close below 40,512.64 would mark the Dow's first correction since September 20, 2022.
The current market is not a healthy environment for setting up new positions or adding to existing stock holdings. IBD's Stock Market Exposure guide currently recommends investors have a maximum of 20% of their capital invested. Now is a good time to build watchlists and wait for a follow-through day to launch a new rally attempt.
Insurance stocks have been largely unscathed, so far. The Insurance-Diversified industry group has advanced 4.7% so far this year to buck the broader downtrend.
EverQuote has rallied more than 38% in 2025, while Palomar Holdings boasts a roughly 26% gain.
Hartford Earnings
Meanwhile, Hartford Insurance has rebounded from January lows following its Q4 earnings report.
The property and casualty insurer on Jan. 30 reported earnings of $2.94 per share to beat FactSet expectations of $2.65 per share. Total revenue rose 7.5% to $6.88 billion, just below estimates for $6.89 billion.
Property and casualty written premiums increased 7% for the quarter, while commercial line premiums grew 6%. Premiums for personal lines grew 12%.
The company's mutual fund and ETF net inflows totaled $796 million in Q4, compared to $3 billion in outflows for 2023.
Piper Sandler in a Feb. 3 research note said that almost all of Hartford's segments performed better than expected. The firm raised its price target on HIG stock to 130 from 127 and kept an overweight rating on the shares.
Keefe Bruyette on Feb. 5 wrote that it expects solid premium growth to boost share prices over the next 12 months. Keefe lifted its price target on HIG stock by $1 to $140, about 17% above where shares traded on Monday, and maintained an outperform rating on the shares.
Hartford Insurance Stock
Hartford Insurance rose about 1% on Monday. The stock is trading along a 120.15 buy point for a 15-week cup-with-handle base.
Shares are up almost 10% this year, and not too far off their record high of 124.90 from Nov. 27.
HIG stock has a 21-Day ATR% of 1.9.
The average true range is a metric available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
EverQuote stock is trading in a buy zone for a cup-with-handle base, above a 26.99 buy point. EVER stock has an ATR of 6.68%.
PLMR stock is extended and trading at record highs following a Feb. 13 breakout. Palomar shares have a 21-day ATR of 4.14%.
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