The online insurance marketplace EverQuote (NASDAQ:EVER) is now 27.13% lower below its high this year in August, and the descend is considered as a good discount for Raymond James Financial Inc. to upgrade its rating on December 26, 2024, from Outperform to Strong Buy on EverQuote with unchanged price target of $35 per share.

The Federal Communications Commission (FCC) just set new regulations that will take effect in January 2025, that is only days away, that will require websites to obtain one-to-one consent from consumers for outboundtelemarketing calls.

• Warning! GuruFocus has detected 4 Warning Signs with EVER.

EverQuote's partners comprising insurance companies use telemarketing calls as one of few favorite ways to reach their potential clients, and next they will need explicit permission before making calls.

Investing.com saw that it could affect 25-30% of EverQuote's business, as the company relies heavily on telephonic outreach for generating leads.

As investors worried about the regulation impacting revenues of companies like EverQuote, the shares declined 27.13% from the peak.

Despite the upcoming challenge, the company performs well with its strong results. EverQuote's earnings results of Q3 2024 showed a 163% year-over-year increase of total revenue reaching $144.5 million.

And the Variable Marketing Margin (VMM) was $43.9 million, up 125% year-over-year. They also performedpositive net income of $11.6 million, compared to a net loss of $29.2 million in the same quarter last year. Cash Flow from Operations also in positive fashion of $23.6 million, compared to a negative cash flow from operations of $4.1 million in the prior year.

The recovery of auto industry induces the need of automotive insurance. EverQuote's technology that is embedded in its services and the rising of demand signals good outlook in the future.

For the strong financial performance, the decline in shares price is considered as a buying-the-dip entry for Raymond James.

You can decide to agree to Raymond James or not by simply checking EverQuote's performance by visiting GuruFocus now and get a deeper insight in it backed with 30-Y financial, charts, breakdowns and more!