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Essent Group (ESNT) Gains But Lags Market: What You Should Know

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Essent Group (ESNT - Free Report) closed at $34.21 in the latest trading session, marking a +0.97% move from the prior day. This move lagged the S&P 500's daily gain of 6%. At the same time, the Dow added 5.2%, and the tech-heavy Nasdaq gained 6.23%.

Coming into today, shares of the mortgage insurance and reinsurance holding company had lost 30.76% in the past month. In that same time, the Finance sector lost 33.35%, while the S&P 500 lost 29.18%.

Wall Street will be looking for positivity from ESNT as it approaches its next earnings report date. On that day, ESNT is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 12.31%.

Investors might also notice recent changes to analyst estimates for ESNT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.17% lower. ESNT currently has a Zacks Rank of #4 (Sell).

Digging into valuation, ESNT currently has a Forward P/E ratio of 5.64. This valuation marks a premium compared to its industry's average Forward P/E of 5.26.

It is also worth noting that ESNT currently has a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Mortgage & Related Services stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.

The Financial - Mortgage & Related Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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