Wall Street expects a year-over-year increase in earnings on higher revenues when Enact Holdings, Inc. (ACT) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 30, 2025, might help the stock move higher if these key numbers are better th ...

RALEIGH, N.C., April 10, 2025 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (NASDAQ:ACT) (Enact) announced it will issue its first quarter earnings release after the market closes on April 30, 2025. Enact will host a conference call to review first quarter 2025 financial results on May 1, 2025 at 8:00 a.m. (ET). Enact's earnings release, summary presentation and financial supplement will be available through the company's website, https://ir.enactmi.com/, at the time of their release to the public. Participants ...

Core Points - Enact Holdings Inc. will replace SolarWinds Corp. in the S&P SmallCap 600 effective April 16, 2025 [1] - The acquisition of SolarWinds by Turn/River Capital is expected to close soon, pending final conditions [1] Summary by Category Index Changes - Enact Holdings will be added to the S&P SmallCap 600 under the Financials sector [1] - SolarWinds will be deleted from the S&P SmallCap 600 under the Information Technology sector [1] Company Actions - The effective date for these changes is prior to the opening of trading on April 16, 2025 [1] - The acquisition deal for SolarWinds is in progress and awaiting final closing conditions [1]

Core Insights - Tritium will unveil a next-generation DC fast charging architecture at the ACT Expo on April 28, 2025, which enhances its current shared power model and aims to redefine industry standards [1][3] - The new architecture is designed for flexibility and scalability, allowing for more charge points at a single location, thereby reducing capital investment for customers [2][3] Company Developments - Arcady Sosinov has been appointed as CEO of Tritium, bringing experience from his previous role as founder and CEO of Freewire Technologies [2][3] - Aaron Jones has been promoted to Chief Sales Officer, and Dr. Philip Garton has been appointed as Chief Financial Officer to support Tritium's growth and market expansion [3] Product and Market Position - Tritium has been a pioneer in DC fast charging for over a decade, focusing on innovative solutions for electric vehicles [4] - The company designs and manufactures proprietary hardware and software for advanced DC fast charging solutions, emphasizing ease of installation and performance in harsh conditions [4]

Group 1 - ACNB is a notable stock in the Finance sector, currently outperforming its peers with a year-to-date return of 3.1% compared to the sector average of 1.8% [4] - The Zacks Rank system indicates that ACNB has a strong buy rating (1), with a 33.1% increase in the consensus earnings estimate for the full year over the past 90 days, reflecting improved analyst sentiment [3] - ACNB belongs to the Banks - Southwest industry, which has seen a decline of about 4.9% year-to-date, further highlighting ACNB's strong performance relative to its industry [5] Group 2 - Enact Holdings, Inc. is another Finance stock that has outperformed the sector, with a year-to-date increase of 6.2% and a Zacks Rank of 2 (Buy) [4][5] - The Insurance - Multi line industry, to which Enact belongs, has performed positively with a 5% increase year-to-date, despite its lower Zacks Industry Rank of 54 [6]

Company Overview - Enact Holdings, Inc. is a leading U.S. private mortgage insurance provider, operating primarily through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981 [5] - The company is headquartered in Raleigh, North Carolina, and is committed to helping more people achieve homeownership through partnerships with lenders [5] Sustainability Report Highlights - Enact released its 2024 Sustainability Report, which covers the calendar year 2024 and emphasizes the company's commitment to sustainability [1][2] - The report showcases Enact's transparency regarding its sustainability initiatives, including third-party risk management, professional development programs, and Hurricane Helene relief response [2] - The President and CEO of Enact, Rohit Gupta, stated that the company's growth and profitability are linked to its focus on sustainability, highlighting the progress made in various areas [3] Stakeholder Engagement - The sustainability pillars and priorities outlined in the report are identified as critical to Enact's long-term success by both internal and external stakeholders [2] - The report aims to provide insights into how Enact is building stronger communities through homeownership, philanthropy, and volunteerism [3] Availability of Report - The 2024 Sustainability Report is accessible on Enact's Investor Relations website [3]

Group 1 - Enact Holdings, Inc. (ACT) is currently ranked 2 (Buy) in the Zacks Rank system, indicating a positive earnings outlook with a 2.2% increase in the consensus estimate for full-year earnings over the past three months [3] - Year-to-date, Enact Holdings, Inc. has gained approximately 1.6%, outperforming the average loss of 1.3% in the Finance sector [4] - Enact Holdings, Inc. belongs to the Insurance - Multi line industry, which is ranked 55 in the Zacks Industry Rank, with an average gain of 0.6% this year [5] Group 2 - Erie Indemnity (ERIE), another stock in the Finance sector, has a year-to-date return of 1.5% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Insurance - Brokerage industry, which includes Erie Indemnity, has seen a significant increase of 9.2% since the beginning of the year, but it is ranked 141 [6]

Core Points - Enact Holdings, Inc. has appointed H. Elizabeth (Liz) Mitchell as an Independent Director effective March 11, 2025, and she will also serve on the Audit Committee [1] - Anne G. Waleski will not stand for re-election at the 2025 Annual Shareholder Meeting, leading to a temporary increase in the Board size from eleven to twelve directors [1] - Ms. Mitchell has extensive experience in finance and public companies, having served on various boards and as CEO of Renaissance U.S. Inc. until her retirement in 2016 [1][2] - Dom Addesso, Chairperson of the Board, expressed confidence that Ms. Mitchell's expertise will contribute to the company's growth and long-term shareholder value [3] - Ms. Waleski will continue her roles on the Audit Committee and Nominating & Corporate Governance Committee until the 2025 Annual Shareholder Meeting, and her decision not to seek re-election is not due to any disagreements with the company [3][4] Company Overview - Enact operates primarily through its wholly-owned subsidiary, Enact Mortgage Insurance Corporation, and is a leading private mortgage insurance provider in the U.S. [4] - The company aims to help more people achieve homeownership by partnering with lenders to provide top-tier service, underwriting expertise, and risk management [4]

Financial Performance and Capital Management - The company may require additional capital to support growth and meet regulatory requirements, which could adversely affect its financial condition if not raised in a timely manner [218]. - The company’s ability to raise additional capital may be limited by Genworth's ownership of at least 80% of its common stock, affecting future capital-raising efforts [219]. - The company's liquidity and capital position are highly dependent on the performance of its subsidiaries and their ability to pay dividends and distributions [293]. - The payment of dividends by the company's insurance subsidiaries is subject to regulatory approval and may be restricted based on their financial condition and operating performance [292]. - Future dividend payments and share repurchase authorizations are subject to review and approval by the Board of Directors [312]. - The ability to return capital to shareholders is dependent on business results and the macroeconomic environment [312]. - Future capital returns may be materially affected by various risk factors [312]. - Genworth's ownership of at least 80% of common stock may limit the company's ability to raise additional capital [312]. - There is no assurance that the company will maintain current levels of dividends or share repurchases in the future [312]. - The company's ability to repurchase stock may be restricted by limited public float [312]. - Future returns of capital must comply with debt agreements and applicable laws [312]. - Any changes in capital return strategies could materially affect the market price of common stock [312]. Regulatory and Compliance Risks - The company is subject to extensive regulation, and changes in regulation may reduce profitability and limit growth, impacting the ability to conduct business [245][246]. - The statutory capital adequacy ratio for U.S. mortgage insurers, known as the RTC ratio, is critical for maintaining business operations and compliance with regulatory requirements [252]. - Regulatory scrutiny related to risk-based pricing systems and the use of algorithms may increase, potentially affecting premium rates and underwriting practices [249]. - The company is subject to various federal and state consumer protection and insurance laws, which could materially adversely affect its business if changes occur [262]. - The Dodd-Frank Act requires originators to retain a specified percentage of credit risk exposure on securitized mortgages that do not meet the definition of a Qualified Residential Mortgage (QRM) [263]. - In July 2023, proposed changes to the Basel III Endgame rule could eliminate the 50% capital relief for high loan-to-value portfolio loans with mortgage insurance for banks with total assets greater than $100 billion, potentially decreasing demand for mortgage insurance [266]. Market and Economic Conditions - A decline in economic conditions or adverse population trends could negatively affect the housing market and, consequently, the demand for mortgage insurance [240]. - Changes in government housing policy and increased competition from federal agencies like FHA and VA could reduce demand for private mortgage insurance [259]. - The FHFA's Enterprise Capital Framework may lead to increased guarantee pricing by GSEs, negatively impacting the private mortgage insurance market [261]. - A decrease in the volume of Low Down Payment Loan originations could lead to a decline in revenue, as the company primarily provides mortgage insurance for these loans [237]. Investment and Financial Risks - The company faces significant unrealized losses in its investment portfolio due to elevated interest rates, impacting future earnings [217]. - The company’s investment portfolio is predominantly limited to highly rated fixed maturity securities, but rising interest rates have led to significant unrealized losses [227]. - The company’s mortgage insurance premiums may not adequately compensate for risks, potentially leading to adverse financial effects [236]. Operational Risks - The company relies on third-party servicers for loan servicing, and disruptions in their operations could increase losses and impact financial performance [230]. - The company relies on third-party vendors for unique products and services, and any failure by these vendors could adversely affect its operations [298]. - The company is exposed to risks from natural or man-made disasters, which could disrupt operations and lead to increased delinquency rates among borrowers [307]. - The company must continuously invest in technology to remain competitive, and failure to enhance its platform could negatively impact its business [302]. Cybersecurity and Reputational Risks - The company has experienced occasional cybersecurity incidents, which, if significant, could damage reputation and result in regulatory fines or legal costs [243][244]. - The company retains confidential customer information, and any failure to protect this data could result in significant costs and damage to reputation [243]. - The company may face reputational harm if Genworth or its subsidiaries experience litigation or damage to their reputation, which could adversely affect its business [277]. - The company faces risks related to litigation and regulatory proceedings, which could result in financial losses and harm its reputation [295]. Shareholder and Corporate Governance - Genworth beneficially owns at least 80% of the company's common stock, which allows it to control significant corporate decisions, potentially delaying or deterring actions favored by other stockholders [268]. - The company is currently a member of the Genworth Consolidated Group, which requires Genworth to own at least 80% of the total voting power of the company's stock [287]. - If the company ceases to be a member of the Genworth Consolidated Group, it may face increased income tax obligations due to the application of "unified loss rules" [288]. - The company does not expect a material reduction in the tax basis of its assets if it departs from the Genworth Consolidated Group, but there are no guarantees regarding future tax obligations [289]. Dividend and Stock Repurchase Activities - The company initiated a quarterly dividend for common shareholders in 2022 [312]. - The first Stock Repurchase Plan was announced, allowing for repurchases of common stock [312].

Core Insights - The article compares Enact Holdings, Inc. (ACT) and Goosehead Insurance (GSHD) to determine which stock is more attractive to value investors [1] Valuation Metrics - ACT has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while GSHD has a Zacks Rank of 4 (Sell) [3] - ACT's forward P/E ratio is 7.58, significantly lower than GSHD's forward P/E of 61.05 [5] - ACT has a PEG ratio of 2.10, while GSHD's PEG ratio is 2.69, suggesting ACT is more favorably valued considering expected EPS growth [5] - ACT's P/B ratio is 1.04, in stark contrast to GSHD's P/B of 1,907.17, indicating a much lower market value relative to book value for ACT [6] - Based on these valuation metrics, ACT earns a Value grade of B, while GSHD receives a Value grade of F [6] Investment Outlook - ACT is positioned as the superior value option due to its solid earnings outlook and favorable valuation figures compared to GSHD [7]