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MGIC Investment Corporation (MTG) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of MGIC Investment (MTG - Free Report) ? 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.
What's Driving the Outperformance?
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.
Valuation Metrics
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.
Zacks Rank
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.
How Does MTG Stack Up to the Competition?
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 - Free Report) . 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.
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MGIC Investment Corporation (MTG) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of MGIC Investment (MTG - Free Report) ? 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.
What's Driving the Outperformance?
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.
Valuation Metrics
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.
Zacks Rank
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.
How Does MTG Stack Up to the Competition?
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 - Free Report) . 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.