10 Best Small-Cap Financial Stocks to Buy Now

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6. Hippo Holdings Inc. (NYSE:HIPO)

Hippo Holdings Inc. (NYSE:HIPO) is one of the 10 best small-cap financial stocks to buy now. The stock carries a moderately bullish consensus sentiment, based on favorable analyst ratings lately. On June 10, Texas Capital assigned a Buy rating to Hippo Holdings Inc. (NYSE:HIPO), after initiating coverage of the stock. The firm estimated a price target of $43, which yields a potential upside of around 72%.

According to the firm, Hippo operates within the home and casualty insurance segment, with solid distribution allies in the home insurance market. According to the firm, new homeowners are drawn to its unique data and smart-home loss-mitigation technology. Texas Capital argues that the market undervalues Hippo’s fronting carrier.

On June 11, Hippo Holdings Inc. (NYSE:HIPO) shared that Laura Boettcher has been promoted as the new Chief Operating Officer of the company. Boettcher will manage operations for the entire enterprise, following her stint as the COO of Hippo Insurance since February 2024.

In her new role, she is expected to instill operational competence and customer orientation across the broader organization. As the COO of Hippo Insurance, she had a reputation for balancing business objectives with consumer needs. Previously, she also served as the Director of Reinsurance and Chief of Staff to the CEO.

Hippo Holdings Inc. (NYSE:HIPO) provides a multi-carrier platform to deliver regulatory licenses, admitted and non-admitted paper, and reinsurance services. The company also offers program-specific and corporate catastrophe reinsurance solutions, renters’ insurance, and liability coverage solutions. Other services in its portfolio include homeowners’ insurance and niche commercial products.

While we acknowledge the potential of HIPO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HIPO and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Small-Cap Financial Stocks to Buy Now.

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