MGIC Investment (US:MTG) ZACKSยท2025-05-26 17:05Core Viewpoint - MGIC Investment (MTG) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - The upgrade for MGIC reflects a positive outlook on its earnings, which could lead to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and stock price movements, highlighting the importance of tracking these revisions for investment decisions [6]. - The Zacks Rank system classifies stocks based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. Current Earnings Estimates for MGIC - MGIC is projected to earn $2.90 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -0.3% [8]. - Over the past three months, the Zacks Consensus Estimate for MGIC has increased by 7.1%, indicating a positive trend in earnings estimates [8]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [9]. - The upgrade of MGIC to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].