This Small Insurance Company Has High Growth Potential
When it comes to growth stocks, you probably wouldn't consider the insurance industry a place to look. But then you'd miss Goosehead Insurance (NASDAQ: GSHD), a small insurance agency that's relatively young and has grown rapidly since it went public almost three years ago.
Goosehead is a personal lines insurance agency, focusing on coverage for things like home, auto, and floods, and it underwrites personal lines and commercial lines for about 100 insurance companies. Its business includes a franchise model, which has resulted in stellar growth on the top and bottom lines. But like many growth stocks, it's sitting at a hefty valuation, so let's see if it's worth its high price.
Goosehead, which was founded in 2003, focuses on providing personal lines of insurance by entering into contracts with insurance carriers that include things like terms of engagement and compensation. Goosehead receives commissions every time customers sign up for insurance; the average rates are 15% for new signups and 13% on renewals.
Source Fool.com
