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MGIC Investment Corporation (MTG) Hits Fresh High: Is There Still Room to Run?
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A strong stock as of late has been MGIC Investment (MTG - Free Report) . Shares have been marching higher, with the stock up 4.5% over the past month. The stock hit a new 52-week high of $29.47 in the previous session. MGIC has gained 22.7% since the start of the year compared to the 16.1% move for the Zacks Finance sector and the 10.7% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 29, 2025, MGIC reported EPS of $0.83 versus consensus estimate of $0.72 while it missed the consensus revenue estimate by 1.12%.
For the current fiscal year, MGIC is expected to post earnings of $3.12 per share on $1.22 in revenues. This represents a 7.22% change in EPS on a 0.39% change in revenues. For the next fiscal year, the company is expected to earn $3.14 per share on $1.25 in revenues. This represents a year-over-year change of 0.64% and 2.66%, 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 they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors 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 D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 9.8X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 12.2X. Additionally, the stock has a PEG ratio of 1.62. 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 supersedes any trend on the style score front. Fortunately, MGIC currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 still be poised for more gains ahead.
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 CNO Financial Group, Inc. (CNO - Free Report) . CNO has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. CNO Financial Group, Inc. beat our consensus estimate by 1.05%, and for the current fiscal year, CNO is expected to post earnings of $4.32 per share on revenue of $3.78 billion.
Shares of CNO Financial Group, Inc. have gained 6.9% over the past month, and currently trade at a forward P/E of 10.37X and a P/CF of 10.31X.
The Insurance - Multi line industry is in the top 22% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MTG and CNO, even beyond their own solid fundamental situation.
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MGIC Investment Corporation (MTG) Hits Fresh High: Is There Still Room to Run?
A strong stock as of late has been MGIC Investment (MTG - Free Report) . Shares have been marching higher, with the stock up 4.5% over the past month. The stock hit a new 52-week high of $29.47 in the previous session. MGIC has gained 22.7% since the start of the year compared to the 16.1% move for the Zacks Finance sector and the 10.7% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 29, 2025, MGIC reported EPS of $0.83 versus consensus estimate of $0.72 while it missed the consensus revenue estimate by 1.12%.
For the current fiscal year, MGIC is expected to post earnings of $3.12 per share on $1.22 in revenues. This represents a 7.22% change in EPS on a 0.39% change in revenues. For the next fiscal year, the company is expected to earn $3.14 per share on $1.25 in revenues. This represents a year-over-year change of 0.64% and 2.66%, 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 they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors 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 D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 9.8X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 12.2X. Additionally, the stock has a PEG ratio of 1.62. 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 supersedes any trend on the style score front. Fortunately, MGIC currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 still be poised for more gains ahead.
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 CNO Financial Group, Inc. (CNO - Free Report) . CNO has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. CNO Financial Group, Inc. beat our consensus estimate by 1.05%, and for the current fiscal year, CNO is expected to post earnings of $4.32 per share on revenue of $3.78 billion.
Shares of CNO Financial Group, Inc. have gained 6.9% over the past month, and currently trade at a forward P/E of 10.37X and a P/CF of 10.31X.
The Insurance - Multi line industry is in the top 22% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MTG and CNO, even beyond their own solid fundamental situation.