Plains GP, Heritage Insurance, Mosaic, LATAM Airlines and PHINIA stand out with high earnings yield for value-focused investors.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Heritage Insurance is pivoting to growth after years of consolidation, boasting improved underwriting and a more diversified geographic footprint beyond Florida. The company relies heavily on reinsurance, which acts as off-balance-sheet leverage, masking the true risk profile and increasing exposure to annual reinsurance market changes. Heritage's growth plans coincide with a softening insurance market, raising concerns about profitability as pricing power declines and catastrophe risks remain elevated.
SSRM, HRTG and VRT made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on August 12, 2025.
While the top- and bottom-line numbers for Heritage Insurance (HRTG) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Heritage Insurance (HRTG) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.03 per share. This compares to earnings of $0.61 per share a year ago.
HRTG eyes a 68.8% earnings jump in Q2 but a 0.00% Earnings ESP clouds the possibility of the continuation of the insurer's streak of beats.
Heritage Insurance has delivered strong premium growth, improved profitability, and robust capital metrics, reflecting effective risk selection and portfolio management. Recent volatility, including a sharp drop from media scrutiny, was quickly reversed, signaling investor confidence in Heritage's capital strength and resilience. Fundamentals are solid: combined ratio below 90%, high ROE, growing book value, and prudent reinsurance support a positive medium-term outlook.
Heritage Insurance has completed a successful turnaround, shifting to disciplined underwriting, geographic diversification, and product optimization, resulting in robust profitability and improved margins. The company's risk profile is significantly de-risked, with most insured value now outside Florida and a strong, cost-effective reinsurance program in place. Valuation remains attractive, as HRTG trades at a discount to peers despite strong earnings growth, resilient balance sheet, and favorable market tailwinds from Florida tort reforms.
HRTG's robust reinsurance strategy cuts costs, stabilizes earnings and fuels growth in high-margin specialty markets.
HRTG's disciplined growth, tech upgrades and share buyback edge out HCI's strong reinsurance and tech spin-off plans.
Heritage Insurance has rebounded strongly, doubling net income and showing resilience despite catastrophic losses, thanks to disciplined underwriting and improved market conditions. Recent legislative reforms, strategic market re-entry, and technological advancements give Heritage a unique competitive edge and support scalable, profitable growth. Valuation remains attractive at 7x earnings, with strong ROE and room for further upside as the market shifts its view from turnaround to growth story.