Is Lemonade Stock A Buy Or Sell Now? Explaining The Edge And Valuation

Sep. 07, 2021 2:15 PM ETLemonade, Inc. (LMND) StockLMND169 Comments

Summary

  • Lemonade is touted as being a disruptive technological insurance provider.
  • I explain the real reason why Lemonade has differentiated itself in this commoditized industry.
  • Lemonade is growing rapidly - I explain the accounting details behind the decline in revenues.
  • Is Lemonade a buy? I evaluate the current valuation against forward growth estimates.
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Lemonade (NYSE:LMND) is likely known by many to be one of the stocks heavily influenced by the #meme craze of recent past. Even after its 50% decline from all-time highs, LMND is still trading over 150% higher than its

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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