SLQT Should I Buy
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SelectQuote Inc (SLQT) does not present a strong buying opportunity at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock's pre-market decline, lack of strong trading signals, and mixed financial performance, combined with reduced analyst price targets, suggest caution. While there is potential for modest short-term gains, the long-term outlook remains uncertain due to heightened near-term risks and declining profitability metrics.
The MACD is positive and expanding, indicating a bullish momentum. However, the RSI is neutral at 79.956, and moving averages are converging, suggesting no clear trend. The stock is currently trading near its resistance level (R1: 0.828), with limited upside potential in the short term.
The company reported an 11.65% YoY increase in revenue for Q2 2026, indicating growth in its core business. Upcoming Q3 2026 financial results announcement and conference call could provide further insights.
Net income and EPS have declined YoY, reflecting profitability challenges. Analysts have lowered price targets due to heightened near-term uncertainty. The stock is down 3.01% pre-market, indicating bearish sentiment.
In Q2 2026, revenue grew by 11.65% YoY to $537.1M. However, net income dropped by 3.88% YoY to $51.17M, and EPS fell by 10% YoY to 0.27. Gross margin also declined by 8.39% YoY to 42.61%, signaling profitability pressures.
Analysts have lowered price targets recently, with Noble Capital reducing the target from $7 to $5 and Craig-Hallum reducing it from $4 to $3. Both maintain positive ratings (Outperform and Buy), but the lowered targets reflect near-term uncertainties.
