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.
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 yearNeutral
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 yearsPositive
Model confidence: 8/10
Key Factors
- Substantial valuation discount (low P/E, P/B)
- Projected upside to $3 based on analyst targets
- Revenue growth and improving operating margins
Long Term
> 3 yearsNeutral
Model confidence: 6/10
Key Factors
- High beta and volatility implying sustained price swings
- Elevated debt load and negative operating cash flow
- Regulatory exposure inherent to insurance brokerage
Key Metrics & Analysis
Financial Health
Revenue Growth5.60%
Profit Margin5.60%
P/E Ratio5.2
ROE15.05%
ROA2.96%
Debt/Equity61.02
P/B Ratio0.4
Op. Cash Flow$-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
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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.