MGIC Investment (MTG) is a Top-Ranked Value Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score targets investors looking for undervalued stocks, utilizing ratios such as P/E, PEG, and Price/Sales to identify attractive investment opportunities [3] Growth Score - The Growth Score emphasizes a company's financial health and future potential, analyzing projected earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score focuses on capitalizing on price trends, using metrics like short-term price changes and earnings estimate revisions to identify optimal entry points for stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies, highlighting stocks with strong value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [9] Company Spotlight: MGIC Investment - MGIC Investment Corp., established in 1957, is the largest private mortgage insurer in the U.S., providing essential services for sustainable homeownership and protecting mortgage investors from credit losses [11] - MGIC has a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Value Style Score of B, supported by a forward P/E ratio of 9.42, making it attractive for value investors [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.11 to $3.12 per share, and an average earnings surprise of +14.2% [12][13]