We recently published an article titled Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where SelectQuote, Inc. (NYSE:SLQT) stands against the other insurance stocks.

Insurance stocks are back in the spotlight after Berkshire Hathaway’s annual shareholder report for 2024. These stocks are not only benefiting from stable cash flows, but they are also benefiting from higher investment yields and premium growth as inflation trends have benefited insurers.

Moreover, AI and tech innovations are starting to spill over into many other industries, which include insurance. It is also benefiting from a demographic tailwind as the growing “silver segment” requires more life and health insurance.

As such, it is worth looking into some of the top performers in this industry. There are good reasons behind each of the stocks’ uptrends.

Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.

Methodology

For this article, I screened the top-performing defense stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

An insurance agent with a tablet device accessing a technology-enabled platform.

SelectQuote, Inc. (NYSE:SLQT)

Number of Hedge Fund Holders In Q4 2024: 20

SelectQuote, Inc. (NYSE:SLQT) is a direct-to-consumer platform that sells insurance policies and healthcare services.

The stock is up significantly so far in 2025 after it reported great Q2 FY2025 earnings. Revenue grew 19% year-over-year to $481.1 million. Net income also increased significantly from $19.4 million to $53.2 million. Adjusted EBITDA grew 30% year-over-year to $87.5 million, and The Senior segment achieved a 39% EBITDA margin, with the Healthcare Services segment seeing SelectRx membership grow 54%.

The revenue forecast was increased from $1.5 billion to $1.575 billion and adjusted EBITDA guidance was raised from $115 million to $140 million. Plus, it secured a $350 million investment from Bain Capital, Morgan Stanley Private Credit, and Newlight Partners.

The consensus price target of $4.5 implies 1.42% downside.

SelectQuote, Inc. (NYSE:SLQT) is up 22.85% year-to-date.

Overall SLQT ranks 5th on our list of the insurance stocks that are skyrocketing so far in 2025. While we acknowledge the potential of SLQT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SLQT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.