Enact Holdings, Inc. (ACT) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Enact Holdings, Inc. is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Financial Expectations - The upcoming earnings report is scheduled for November 6, 2024, with a consensus estimate of $1.01 per share, reflecting a -1% change year-over-year. Revenues are projected to be $309.26 million, which is a 3.4% increase from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.93% higher, indicating a collective reassessment by analysts [4]. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +10.89%, suggesting a bullish outlook on the company's earnings prospects [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. Enact Holdings currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [10]. Historical Performance - Enact Holdings has a history of exceeding consensus EPS estimates, having beaten expectations in the last four quarters, including a +23.30% surprise in the most recent quarter [11][12]. Industry Context - In the broader context of the Zacks Insurance - Multi line industry, EverQuote is expected to report earnings of $0.19 per share for the same quarter, indicating a significant year-over-year increase of +147.5% [16]. However, EverQuote has a negative Earnings ESP of -48.28%, which complicates predictions despite its strong Zacks Rank of 1 [17].