Latest news with #MGICInvestment
Yahoo
11-07-2025
- Business
- Yahoo
Why MGIC Investment (MTG) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. MGIC Investment (MTG) is headquartered in Milwaukee, and is in the Finance sector. The stock has seen a price change of 9.11% since the start of the year. The mortgage insurance company is paying out a dividend of $0.13 per share at the moment, with a dividend yield of 2.01% compared to the Insurance - Multi line industry's yield of 1.8% and the S&P 500's yield of 1.52%. Looking at dividend growth, the company's current annualized dividend of $0.52 is up 6.1% from last year. Over the last 5 years, MGIC Investment has increased its dividend 4 times on a year-over-year basis for an average annual increase of 20.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGIC's current payout ratio is 17%, meaning it paid out 17% of its trailing 12-month EPS as dividend. Earnings growth looks solid for MTG for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.92 per share, with earnings expected to increase 0.34% from the year ago period. From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout. High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MTG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-07-2025
- Business
- Yahoo
MGIC Investment Corporation (MTG) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of MGIC Investment (MTG)? Shares have been on the move with the stock up 9.6% over the past month. The stock hit a new 52-week high of $28.67 in the previous session. MGIC has gained 20.3% since the start of the year compared to the 9.9% gain for the Zacks Finance sector and the 5.6% return for the Zacks Insurance - Multi line industry. The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2025, MGIC reported EPS of $0.75 versus consensus estimate of $0.66. For the current fiscal year, MGIC is expected to post earnings of $2.92 per share on $1.23 in revenues. This represents a 0.34% change in EPS on a 1.3% change in revenues. For the next fiscal year, the company is expected to earn $3.06 per share on $1.26 in revenues. This represents a year-over-year change of 4.79% and 2.56%, respectively. Though MGIC has recently hit a 52-week high, what is next for MGIC? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style. MGIC has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B. In terms of its value breakdown, the stock currently trades at 9.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.1X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 11.1X. Additionally, the stock has a PEG ratio of 2.61. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective. We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, MGIC currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if MGIC meets the list of requirements. Thus, it seems as though MGIC shares could have potential in the weeks and months to come. Shares of MTG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kemper Corporation (KMPR). KMPR has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B. Earnings were strong last quarter. Kemper Corporation beat our consensus estimate by 11.49%, and for the current fiscal year, KMPR is expected to post earnings of $6.34 per share on revenue of $4.97 billion. Shares of Kemper Corporation have gained 1% over the past month, and currently trade at a forward P/E of 10.03X and a P/CF of 9.36X. The Insurance - Multi line industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MTG and KMPR, even beyond their own solid fundamental situation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Kemper Corporation (KMPR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-06-2025
- Business
- Yahoo
1 Profitable Stock to Consider Right Now and 2 to Think Twice About
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. A business making money today isn't necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. Keeping that in mind, here is one profitable company that generates reliable profits without sacrificing growth and two that may face some trouble. Trailing 12-Month GAAP Operating Margin: 22.7% Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States. Why Do We Pass on GTN? Products and services fail to spark excitement with consumers, as seen in its flat sales over the last two years Projected sales decline of 11.7% for the next 12 months points to an even tougher demand environment ahead Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 8.3 percentage points Gray Television's stock price of $4.57 implies a valuation ratio of 0.8x forward EV-to-EBITDA. If you're considering GTN for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: 80.6% Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE:MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments. Why Does MTG Worry Us? Net premiums earned tumbled by 1.1% annually over the last four years, showing market trends are working against its favor during this cycle Costs have risen faster than its revenue over the last two years, causing its combined ratio to worsen by 20 percentage points Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.8% annually At $27.67 per share, MGIC Investment trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than MTG. Trailing 12-Month GAAP Operating Margin: 31.5% With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE:MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas. Why Are We Positive On MRK? Dominant market position is represented by its $63.92 billion in revenue, which creates significant barriers to entry in this highly regulated industry Free cash flow margin jumped by 10.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends Industry-leading 15.6% return on capital demonstrates management's skill in finding high-return investments Merck is trading at $79 per share, or 8.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
MTG Hits 52-Week High: Time to Add the Stock for Better Returns?
MGIC Investment Corporation MTG hit a 52-week high of $28.28 on June 24. Shares closed at $28.10 after gaining 18.5% year to date, outperforming the industry, the sector and the Zacks S&P 500 composite in the same time Investment has outperformed its peers, including Enact Holdings, Inc. ACT, Horace Mann Educators Corporation HMN and Old Republic International Corporation ORI. Shares of ACT, HMN and ORI have gained 15.6%, 9.2% and 4.8%, respectively, year to date. Image Source: Zacks Investment Research With a capitalization of $6.67 billion, the average number of shares traded in the last three months was 1.9 million. Shares of MGIC Investment are trading above the 50-day and 200-day simple moving averages (SMA) of $25.89 and $24.95, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data. Image Source: Zacks Investment Research MGIC Investment shares are trading at a price-to-book value of 1.3X, lower than the industry average of 2.68X, the Finance sector's 4.15X and the Zacks S&P 500 Composite's 8.09X. Its pricing, at a discount to the industry average, gives a better entry point to investors. Image Source: Zacks Investment Research Return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame. This reflects MTG's efficiency in utilizing funds to generate income. ROIC was 11.4% in the trailing 12 months, better than the industry average of 2%. The Zacks Consensus Estimate for MGIC Investment's 2025 earnings per share indicates a year-over-year increase of 0.3%. The estimate for 2025 revenues is pegged at $1.24 billion, implying a year-over-year improvement of 1.8%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 4.7% and 2.9%, respectively, from the corresponding 2025 estimates. Earnings have grown 12% in the past five years, better than the industry average of 10.1%. MGIC Investment surpassed earnings estimates in each of the last four quarters, the average being 15.88%. Each of the three analysts covering the stock has raised estimates for 2025 and 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 moved 6.2% and 5.9% north, respectively, in the last 60 days. Image Source: Zacks Investment Research New business and solid annual persistency should drive the insurance-in-force portfolio. A higher level of new and existing home sales, an increased percentage of homes purchased for cash and an improved level of refinance activity should help MGIC Investment grow. MTG has been witnessing a declining pattern of claim filings. A decline in loss and claims will strengthen the balance sheet and improve this mortgage insurer's financial largest mortgage insurer in the United States is improving its capital position with capital contributions, reinsurance transactions and cash position. Both leverage and times interest earned ratios have been improving.A solid capital position supports MTG in wealth distribution. The company currently has $232.9 million remaining in its authorization kitty through December 2026. Its share repurchase activity reflects continued strong mortgage credit performance. Higher premiums, outstanding credit quality and new business will continue to induce growth for MCIG. As part of wealth distribution to shareholders, MTG also engages in share buyback, reflecting capital strength, financial results and share price levels that are expected to be attractive to generate long-term value for has a VGM Score of B, which indicates a potential upside and instills confidence. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum. Its solid growth projections as well as attractive valuations are other positives. Coupled with optimistic analyst sentiment and favorable ROIC, the time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Old Republic International Corporation (ORI) : Free Stock Analysis Report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
What Makes MGIC Investment (MTG) a Strong Momentum Stock: Buy Now?
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at MGIC Investment (MTG), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. MGIC Investment currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> In order to see if MTG is a promising momentum pick, let's examine some Momentum Style elements to see if this mortgage insurance company holds up. Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area. For MTG, shares are up 2.05% over the past week while the Zacks Insurance - Multi line industry is down 1.39% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 3.69% compares favorably with the industry's 0.2% performance as well. Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of MGIC Investment have increased 8.93% over the past quarter, and have gained 28.21% in the last year. In comparison, the S&P 500 has only moved 7.18% and 10.37%, respectively. Investors should also pay attention to MTG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. MTG is currently averaging 1,527,776 shares for the last 20 days. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with MTG. Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost MTG's consensus estimate, increasing from $2.75 to $2.90 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period. Given these factors, it shouldn't be surprising that MTG is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep MGIC Investment on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
