What a brutal six months it’s been for EverQuote. The stock has dropped 36.2% and now trades at $15.87, rattling many shareholders. This might have investors contemplating their next move.
Is there a buying opportunity in EverQuote, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.
Why Is EverQuote Not Exciting?
Despite the more favorable entry price, we don't have much confidence in EverQuote. Here is one reason there are better opportunities than EVER and a stock we'd rather own.
Poor Marketing Efficiency Drains Profits
Unlike enterprise software that’s typically sold by dedicated sales teams, consumer internet businesses like EverQuote grow from a combination of product virality, paid advertisement, and incentives.
It’s very expensive for EverQuote to acquire new users as the company has spent 80.3% of its gross profit on sales and marketing expenses over the last year. This inefficiency indicates a highly competitive environment with little differentiation between EverQuote and its peers.
Final Judgment
EverQuote’s business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 3.7× forward EV/EBITDA (or $15.87 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're pretty confident there are more exciting stocks to buy at the moment. We’d recommend looking at one of our all-time favorite software stocks.
Stocks We Would Buy Instead of EverQuote
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
