Is SelectQuote a Double-Bagger Stock? Analysts Predict Huge Gains

It might be surprising for some to hear that 2024 has been a great year for stocks in the insurance industry. In fact, every single large-cap insurance stock in the United States and Canada trading region has a positive return this year. Additionally, the iShares U.S. Insurance ETF (ARCA: IAK) has provided a total return of nearly 29%.  Some stocks, like Progressive (NYSE: PGR), are up more than 50%.

SelectQuote (NYSE: SLQT) is no exception to the success of this industry. Shares are up 54% this year. However, one metric that does make it stand out is the average Wall Street price target placed on the company. It sits at $4.50. This means the stock could rise 113% from the $2.11 level as of the Oct. 8 close. This average price target matches up with the figure set by analysts at Craig-Hallum, who initiated coverage of the stock on Sept. 30.

SelectQuote's Business Model Has Advantages Over Traditional Insurance Companies

SelectQuote is a direct-to-consumer platform for shopping for insurance. It covers life, home, auto, and senior health insurance. It is not an insurance provider but simply finds insurance products for consumers. SelectQuote then gets a commission from the insurance provider when the consumer buys a policy.

The company claims that its competitive advantages are its technology and skilled agents. Its ...