Lemonade (NYSE:LMND) has sloped down since its IPO, but there’s reason to be hopeful about Lemonade stock at these levels.
Big data is radically transforming how we do business. Data collection and interpretation is becoming easier and more accessible. As a result, companies now have more raw data than ever before, and it is helping businesses make more informed decisions. That’s why Lemonade stock has become such an attractive play in the insurance sector.
Lemonade is a new company that is operating within a very competitive market. But the business model sets it apart from its peers.
Lemonade leverages big data and artificial intelligence to improve the underwriting process, detect fraud, and process claims. Due to this efficient and sustainable model, it looks more attractive than peers Allstate (NYSE:ALL) and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) — especially if you are forward-looking.
Although Lemonade stock is trading at very high multiples, I would still class shares a bargain, considering they are at a 43% discount to their 52-week high of $96.51. And that in terms of revenue growth, it stands head and shoulders above its peers.
Lemonade Stock Is a Growth Stock With a Solid Story
Source: Chart by Faizan Farooque, data from filings and analyst reports
Peter Sondergaard, Senior Vice President, Gartner, has said, “Information is the oil of the 21st century, and analytics is the combustion engine.” Long story short, data is a big