We recently published an article titled Why These 15 Financial Services Stocks Are Surging In 2025. In this article, we are going to take a look at where Heritage Insurance Holdings, Inc. (NYSE:HRTG) stands against the other financial services stocks.
The financial services sector has entered 2025 on a wave of strong performance and renewed investor interest. This sector consists of banking, payments, insurance, and asset management and is a cornerstone of the global economy.
These stocks didn’t do too well during the 2022 downturn, as there was uncertainty regarding whether or not the Federal Reserve would bail out regional banks. However, after the “mini banking crisis” calmed down, these stocks have performed quite well despite the macro trends being uncertain. And for some stocks, that momentum has been even stronger so far this year. It’s worth looking at why.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Real Estate Stocks that are up the Most in 2025 in another article.
Methodology
For this article, I screened the best-performing financial services stocks year-to-date.
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).
A large city skyline with a variety of established residential and commercial properties.
Heritage Insurance Holdings, Inc. (NYSE:HRTG)
Number of Hedge Fund Holders In Q4 2024: 16
Heritage Insurance Holdings, Inc. (NYSE:HRTG) provides personal and commercial residential insurance products across several US states, focusing on catastrophe-prone regions.
The stock is up significantly so far in 2025 as the company reported a strong fourth quarter in 2024, with net income exceeding $18.9 million despite significant catastrophe losses from Hurricane Milton, and it managed to keep loss ratios in check due to lower-than-expected non-catastrophe claims.
In March 2025, Heritage reported a full-year net income of $61.5 million, up from $45.3 million in 2023, driven by premium growth, improved underwriting, and disciplined expense management.
The consensus price target of $12.5 implies 33.86% downside.
Heritage Insurance Holdings, Inc. (NYSE:HRTG) stock is up 56.20% year-to-date.
Overall HRTG ranks 7th on our list of the financial services stocks that are surging in 2025. While we acknowledge the potential of HRTG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HRTG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.