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Trupanion (TRUP) Surges 9.0%: Is This an Indication of Further Gains?

Trupanion (TRUP) shares rallied 9% in the last trading session to close at $33.78. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 21.9% loss over the past four weeks.

Heightened focus on pets’ health and well-being in an underpenetrated pet insurance market, product launches, extended operating boundaries and a solid capital position continue to drive TRUP.

With a change in the attitude of pet owners who are increasingly focusing on pets’ health and well-being, TRUP is poised well for growth in a total addressable market worth $34.1 billion. This pet insurer continues to invest in areas where it can achieve high internal rates of return. Improving pricing should add to the upside.

This pet insurer has also been expanding globally, apart from strengthening its compelling portfolio. While TRUP is consolidating its presence in Japan, a couple of pending buyouts mark its foray into Europe.

Trupanion remains focused on growing its addressable market by 40% by 2025 end by adding 10,000 international hospitals. This will increase its overall market from 25,000 in North America to 35,000 globally. While doing so, it anticipates expanding its active hospital base.

This provider of medical insurance covering cats and dogs is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of -833.3%. Revenues are expected to be $251.88 million, up 22.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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For Trupanion, the consensus EPS estimate for the quarter has been revised 5.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TRUP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Trupanion belongs to the Zacks Insurance - Accident and Health industry. Another stock from the same industry, Unum (UNM), closed the last trading session 2.4% higher at $41.27. Over the past month, UNM has returned 2.5%.

Unum's consensus EPS estimate for the upcoming report has changed +1.9% over the past month to $1.65. Compared to the company's year-ago EPS, this represents a change of +21.3%. Unum currently boasts a Zacks Rank of #1 (Strong Buy).

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Trupanion, Inc. (TRUP) : Free Stock Analysis Report

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