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SLQT:NYSESelectQuote, Inc. Analysis

Data as of 2026-05-26 - not real-time

$0.98

Latest Price

8/10Risk

Risk Level: High

Executive Summary

SelectQuote, Inc. delivered a robust Q3 2026 earnings beat, surpassing both EPS and revenue expectations, and the market reacted with a 17% price surge. Revenue growth of 5.6% YoY and an operating margin above 8% support the earnings outperformance, while a forward P/E of roughly 5x and a price‑to‑book under 0.5 suggest the stock is trading at a deep discount to its peers. The consensus upside potential exceeds 200%, driven by a target median price near $3 versus the current sub‑$1 level, highlighting significant upside if the company can sustain its growth trajectory. However, the balance sheet shows a high debt‑to‑equity ratio and negative operating cash flow, which temper the enthusiasm.
Technically, the 20‑day SMA sits above the 50‑day SMA but remains below the 200‑day SMA, indicating a short‑term bullish tilt within a longer‑term neutral framework. The RSI hovers around 50, and the MACD histogram is negative, signaling limited momentum. A beta well above 2 and a 30‑day volatility exceeding 140% point to pronounced price swings, while decreasing volume and a clear support near $0.80 versus resistance at $1.39 suggest the stock may test lower levels before any sustained rally.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 7/10

Key Factors

  • Recent earnings beat with strong price reaction
  • Negative MACD momentum and decreasing volume
  • Proximity to support level at $0.80

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Substantial valuation discount (low P/E, P/B)
  • Projected upside to $3 based on analyst targets
  • Revenue growth and improving operating margins

Long Term

> 3 years
Neutral
Model confidence: 6/10

Key Factors

  • High beta and volatility implying sustained price swings
  • Elevated debt load and negative operating cash flow
  • Regulatory exposure inherent to insurance brokerage

Key Metrics & Analysis

Financial Health

Revenue Growth5.60%
Profit Margin5.60%
P/E Ratio5.2
ROE15.05%
ROA2.96%
Debt/Equity61.02
P/B Ratio0.4
Op. Cash Flow$-2278000
Free Cash Flow$20.9M
Industry P/E16.8

Technical Analysis

TrendNeutral
RSI49.5
Support$0.80
Resistance$1.39
MA 20$1.05
MA 50$0.83
MA 200$1.42
MACDBearish
VolumeDecreasing
Fear & Greed Index91.38

Valuation

Target Price$3.06
Upside/Downside212.66%
GradeUndervalued
TypeValue

Risk Assessment

Beta2.74
Volatility147.04%
Sector RiskMedium
Reg. RiskHigh
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.