On Sep 13, 2016, Zacks Investment Research upgraded MGIC Investment Corp. (NYSE:MTG) to a Zacks Rank #1 (Strong Buy).
Why the upgrade?
MGIC Investment has been witnessing upward revisions in earnings estimates on the back of strong August operating statistics. This multi line insurer delivered positive earnings surprise in three of the last four quarters with an average beat of 12.11%.
Per the Aug 2016 operating statistics, the company’s insurance in force of $179.1 billion increased 4.6% year over year. Also, delinquent inventory (number of loans) for the said period was 51,642, down 20.3% year over year.
The multi line insurer has been experiencing a rise in new business written over the last few years. This is mainly due to larger origination volume as well as increase in the private mortgage insurance industry’s market share.
Banking on continued growing insurance in force, MGIC Investment has been improving its market share and currently holds 19% market share in the industry where it operates. Also, the company anticipates writing at least the same amount of new insurance as it did in 2015.
MGIC Investment has been displaying a declining trend in claim filings, which it expects to deteriorate further in 2016.
The Zacks Consensus Estimate for 2016 increased 2.5% to $0.83 per share as three out of four estimates were revised higher over the last 60 days.
Stocks to Consider
Investors interested in other stocks from the same space can consider CNO Financial Group, Inc. (NYSE:CNO) , FBL Financial Group Inc. (NYSE:FFG) and ageas SA/NV (OTC:AGESY) . Each of these stocks holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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MGIC INVSTMT CP (MTG): Free Stock Analysis Report
CNO FINL GRP (CNO): Free Stock Analysis Report
FBL FINL GRP-A (FFG): Free Stock Analysis Report
AGEAS-ADR (AGESY): Free Stock Analysis Report
Original post
Zacks Investment Research