- Heritage Insurance Holdings (HRTG) has shown strong technical “buy” signals and is trading above all of its daily moving averages.
- HRTG has gained 50.6% since March 13.
- Wall Street analysts are bullish and the stock has two “Strong Buy” ratings.
Today’s Featured Stock:
Valued at $808 million, Heritage Insurance Holdings (HRTG) is a property and casualty insurance holding company. Through its subsidiary, Heritage Property & Casualty Insurance Company, the company provides personal residential insurance for single-family homeowners and condominium owners. Heritage Insurance Holdings is based in Clearwater, Florida.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipchart feature to review the charts for consistent price appreciation. HRTG checks those boxes. Since the Trend Seeker signaled a “buy” on March 13, the stock has gained 50.6%.
On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on steady volume.
HRTG Price vs. Daily Moving Averages:
What Barchart’s Technical Indicators Say About Heritage:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
When a stock is trading above all of its daily moving averages and closes within 4% of its 52-week high, it won’t take much to hit another new high.
- Heritage has a 100% technical “buy” signal.
- The stock closed at $18.87 on April 17, within 0.2% of its 52-week high.
- HRTG has a weighted alpha of +78.82.
- The stock has gained 97.3% over the past year.
- Trend Seeker “buy” signal intact.
- HRTG is trading above its 20-, 50- and 100-day moving averages.
- The stock has made 15 new highs and is up 39.3% in the last month.
- The 14-day Relative Strength Index is at 79.25%.
- The technical support level is at $18.01.
Follow the Fundamentals:
Note the projected increases in both revenue and earnings.
- Trailing price/earnings (P/E) ratio of 8.86x.
- Revenue is expected to grow 6.51% this year and another 7.51% next year.
- Earnings are estimated to increase 17.08% this year and increase again by an additional 27.48% next year.
Analyst and Investor Sentiment on Heritage:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are bullish on this stock.
- Wall Street analysts issued two “Strong Buy” opinions and one “Hold” opinion on the stock with price targets between $19 and $20.
- Value Line gives the stock its average rating.
- CFRA’s MarketScope gives the stock a “Buy” rating.
- MorningStar thinks the stock is 24% undervalued.
- 4,280 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”
The Bottom Line:
Heritage currently has market momentum and good revenue and earnings projections.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
