Here's Why I'm Going to Double Down on Lemonade
To say insurance technology company Lemonade (NYSE: LMND) has been a highly valued stock would be an understatement. The stock is down by more than 55% so far in 2021, but still trades at more than 37 times trailing-12-month revenue.
There's a good reason for this lofty valuation, however. Most of Lemonade's revenue comes from low-cost types of insurance, particularly renters insurance. If Lemonade can take its 1.1 million customers -- most of which are very satisfied with their experience -- and sell them more expensive types of insurance, there could be tremendous upside ahead.
Well, investors recently got some excellent news on this front, and it's enough to make me confident in adding to my already considerable position in the insurance disruptor.
Source Fool.com
