Long Position on SLQT @ $29.00 on 3/18/2021 (Fundamentals)

SelectQuote (SLQT) was founded in 1985 and provides solutions that help consumers protect their most valuable assets: their families, health and property.

The company pioneered the direct-to-consumer model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs.

Two foundational pillars underpin SelectQuote's success: a force of more than 1,000 highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources, scores, and routes high-quality sales leads. The company has three core business lines: SelectQuote Senior, SelectQuote Life and SelectQuote Auto and Home.

SelectQuote Senior, the largest and fastest-growing business, serves the needs of a demographic that sees 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans from 15 leading, nationally-recognized carriers, as well as prescription drug plan, dental, vision and hearing plans.

SelectQuote reported 2nd Quarter December 2020 earnings of $0.55 per share on revenue of $358.3 million. The consensus earnings estimate was $0.48 per share on revenue of $351.7 million.

The company said it expects fiscal 2021 revenue of $920.0 million to $940.0 million. The company's previous guidance was revenue of $840.0 million to $880.0 million and the current consensus revenue estimate is $871.5 million for the year ending June 30, 2021.

Having surpassed earnings in its last three quarters and being a stronger-ranked multi-line insurance company, shares prices should rise and rebound from the lower boundary of their "trading channel".

Entry Point: $29.00

Trading Range: $15.76 - $32.55

Stop Loss: $27.55

Target Price: $32.00

Updates

3/31/2021 10:17:54 AM

SLQT closed at $30

Position closed on 3/31/2021 at price of $30.00 with a 3.45% gain in 13 days.

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