Insurance services provider Lemonade (NYSE: LMND) is slated to release its second-quarter earnings results today after the market closes. Lemonade offers renters’ insurance, homeowners’ insurance, car insurance, pet insurance, and term life insurance through its artificial intelligence (AI) platform. LMND stock has lost 43% so far this year.
The Street expects Lemonade to post a diluted loss of $1.31 per share in Q2, much worse than its comparative prior year period’s loss of $0.92 per share. Meanwhile, revenue is pegged at $47.56 million, representing year-over-year growth of 69.3%.
Lemonade’s Q2 Website Traffic Trends are Robust
TipRanks Website Traffic Tool portends that the insurance provider is set to report impressive Q2 results. As per the tool, in Q2, the total estimated visits to lemonade.com jumped 49.02% compared to the same period of last year. June alone contributed a robust 64.30% year-over-year growth.
Furthermore, TipRanks Website Traffic Tool indicates that the year-to-date estimated visits have advanced 64.32% compared to the same period last year. These numbers hint that Lemonade is set to post solid second-quarter performance.
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Investors are Highly Optimistic
Remarkably, TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on Lemonade, with 12.2% of portfolios tracked by TipRanks increasing their exposure to LMND stock over the past 30 days.
However, analysts have a Hold consensus rating on LMND stock based on three Buys, two Holds, and three Sells. The average Lemonade price target of $24.81 implies 3.1% upside potential to current levels.
Is Lemonade Overvalued?
Lemonade trades at a forward Price/Sales multiple of 7.7x, much higher than the sector median of 2.9x, implying that the stock is overvalued at current levels. Nonetheless, Lemonade is at a growing stage of its journey and is capable of turning things around with increased customer acquisition and operational efficiency.
Ending Thoughts
Lemonade’s AI-based platform and machine learning algorithm help the company to both satisfy and grow its customer base. Although the company is incurring a loss right now, its automated insurance selling and claims processing techniques will enable the company to turn profitable in the long run.
Notably, the humongous growth in Lemonade’s Q2 website visits indicates that customers are flocking to its website to source its products and services even more. Plus, the macro indicators are showing signs of improvement, indicating that Lemonade is poised for brighter days ahead.
