Lemonade (LMND) Moves 9.4% Higher: Will This Strength Last?

Lemonade (LMND) shares soared 9.4% in the last trading session to close at $44.31. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 31% gain over the past four weeks.LMND remains focused on accelerating growth and improving efficiencies by acquiring profitable new businesses and increasingly focusing on the car insurance business. It believes the car insurance business will become a major growth engine for the company. This insurer now wants to grow business by ten fold in near future. Lemonade is focusing more on technology and AI as it gives structural advantage as well as competitive advantage.  It has pursued various strategic initiatives for CAT exposure, including geographic diversification, product diversification, introducing partners with whom it places a premium in certain regions, and targeted non-renewals in CAT-exposed areas. Lemonade noted that diversification has helped it deliver sustained sequential improvement in the gross loss ratio. This company is expected to post quarterly loss of $0.78 per share in its upcoming report, which represents a year-over-year change of +3.7%. Revenues are expected to be $163.39 million, up 33.9% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Lemonade, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LMND going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Lemonade is part of the Zacks Insurance - Multi line industry. International General Insurance Holdings Ltd. (IGIC), another stock in the same industry, closed the last trading session 3.7% lower at $22. IGIC has returned -0.4% in the past month.International General Insurance's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.55. Compared to the company's year-ago EPS, this represents a change of -25.7%. International General Insurance currently boasts a Zacks Rank of #4 (Sell).Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lemonade, Inc. (LMND): Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report California Resources Corporation (CRC): Free Stock Analysis Report International General Insurance Holdings Ltd. (IGIC): Free Stock Analysis Report American Well Corporation (AMWL): Free Stock Analysis Report Duolingo, Inc. (DUOL): Free Stock Analysis Report QXO, Inc. (QXO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks