Core Insights - MGIC Investment Corporation (NYSE:MTG) is recognized among the 15 Dividend Growth Stocks with the highest growth rates [1] - Barclays has raised its price target for MGIC to $30 from $28, maintaining an Equal Weight rating, citing a positive outlook for consumer finance in 2026 [2] Financial Performance - In Q3 2025, MGIC reported a net income of $191 million and an annualized return on equity of 14.8% [3] - The book value per share increased to $22.87, reflecting an 11% rise compared to the same period last year [3] Shareholder Returns - MGIC returned $980 million to shareholders through dividends and share repurchases, reducing its share count by 12% [4] - The company achieved a significant milestone by surpassing $300 billion in insurance in force, marking a first in the industry [4] Business Operations - MGIC operates primarily through its subsidiary, Mortgage Guaranty Insurance Corporation, providing mortgage insurance to lenders across the United States [4]

Core Viewpoint - NMI Holdings, Inc. will report its fourth quarter results for the period ending December 31, 2025, on February 10, 2026, after market close [1] Group 1: Earnings Announcement - The earnings report will be followed by a conference call and live webcast scheduled for 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time [2] - The webcast will be accessible on the company's website, and a replay along with the earnings press release and supplemental information will also be available [2] Group 2: Company Overview - NMI Holdings, Inc. is the parent company of National Mortgage Insurance Corporation, which provides private mortgage insurance to support low-down-payment borrowers while protecting lenders and investors from losses due to borrower defaults [3]

Core Viewpoint - Enact Holdings, Inc. is set to release its fourth quarter earnings on February 3, 2026, with a conference call scheduled for February 4, 2026, to discuss the financial results [1]. Group 1: Earnings Release Information - The fourth quarter earnings release will be available after market close on February 3, 2026 [1]. - A conference call to review the financial results will take place on February 4, 2026, at 8:00 a.m. (ET) [1]. - Earnings release materials, including a summary presentation and financial supplement, will be accessible on the company's website at the time of release [1]. Group 2: Participation Details - Participants wishing to join the live Q&A session must pre-register to obtain a dial-in number and unique PIN [2]. - It is recommended to join the call at least 15 minutes in advance, although registration can occur at any time [2]. - A live webcast of the event will be available for those who do not plan to ask questions [2]. Group 3: Company Overview - Enact Holdings, Inc. operates primarily through its subsidiary, Enact Mortgage Insurance Corporation, and has been a leading U.S. private mortgage insurance provider since 1981 [4]. - The company focuses on helping individuals achieve homeownership by partnering with lenders to provide top-tier service and underwriting expertise [4]. - Enact aims to positively impact communities by empowering customers and their borrowers in a sustainable manner [4].

Core Viewpoint - Rocket Companies Inc. is identified as a strong investment opportunity for the next five years, supported by positive sector growth expectations in mortgage insurance and strategic acquisitions [1][4]. Financial Performance - In Q3 2025, Rocket Companies reported adjusted revenue of $1.783 billion, exceeding guidance by $133.93 million and reflecting a year-over-year growth of 34.77% [2]. - The company earned $0.07 per share, surpassing Street estimates by $0.02 [2]. Sector Outlook - Keefe Bruyette raised the price target for Rocket Companies to $20, citing a positive outlook for the mortgage insurance sector, with expectations of double-digit growth in book value [1][3]. - Oppenheimer initiated coverage with an Outperform rating and a $25 price target, highlighting Rocket as a premier investment in the residential real estate sector, particularly due to declining interest rates boosting refinance demand [4]. Strategic Acquisitions - The integration of Redfin and Mr. Cooper is a significant driver of Rocket's performance, creating a large servicing portfolio nearing 10 million clients, which represents one in every six US mortgages [3]. - This merger is expected to enhance Rocket's top-of-funnel strategy, allowing the company to capture and monetize the entire real estate lifecycle effectively [4]. Company Overview - Rocket Companies provides a range of mortgage, real estate, and personal finance services in the US and Canada, operating through two segments: Direct to Consumer and Partner Network [4].

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]

Core Insights - Zacks Premium offers various tools to enhance stock market investment confidence and knowledge [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score assesses stocks based on projected earnings, sales, and cash flow to find those with sustainable growth potential [5] Momentum Score - The Momentum Score focuses on stocks with upward or downward price trends, utilizing recent price changes and earnings estimate revisions [6] VGM Score - The VGM Score combines all three Style Scores to provide a comprehensive evaluation of stocks based on value, growth, and momentum [7] Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.81% since 1988 [9] Stock Recommendation: MGIC Investment - MGIC Investment Corp. is a leading private mortgage insurer in the U.S., focusing on sustainable homeownership [12] - MGIC is rated 2 (Buy) with a VGM Score of B and a Momentum Style Score of A, indicating strong investment potential [13] - Recent upward revisions in earnings estimates suggest a positive outlook, with the Zacks Consensus Estimate increasing by $0.11 to $3.12 per share [13]

Core Insights - The article discusses the impact of the sluggish real estate market in the US on various companies, particularly private mortgage insurers like Enact Holdings [1] Group 1: Market Conditions - The US real estate market has been sluggish throughout the year, affecting companies involved in this sector [1] Group 2: Investment Opportunities - The best investment opportunities are identified in stocks that are less widely followed or those that do not accurately reflect current market opportunities [1]

Core Insights - Essent Group's Q3 CY2025 results fell short of market expectations, with revenue declining 1.5% year-on-year to $311.8 million and GAAP EPS of $1.67, which was 5.5% below analyst estimates [1][5]. Financial Performance - Revenue: $311.8 million vs analyst estimates of $317 million (1.5% year-on-year decline, 1.6% miss) [5] - EPS (GAAP): $1.67 vs analyst expectations of $1.76 (5.5% miss) [5] - Adjusted Operating Income: $199.2 million vs analyst estimates of $257.6 million (63.9% margin, 22.7% miss) [5] - Operating Margin: 63.9%, down from 65.6% in the same quarter last year [5] - Market Capitalization: $5.96 billion [5] Management Commentary - Management attributed the revenue shortfall to higher loan default provisions and increased claim severity, while maintaining that the underlying credit quality remains strong with a weighted average FICO score of 746 [3][4]. - CEO Mark Casale noted that the increase in default rates was seasonal and there were no concerning geographic or vintage trends impacting credit performance [3][6]. - CFO David Weinstock emphasized the company's strong balance sheet and commitment to a conservative capital strategy to navigate market volatility [3]. Key Operational Insights - Default provisions increased due to larger average loan sizes, not due to deteriorating credit trends [6]. - Claims severity rose modestly but remained below reserves, attributed to timing in claims processing [6]. - The average base premium rate for U.S. mortgage insurance remained stable, reflecting consistent pricing despite market competition [6]. - Significant share repurchase activity and a new $500 million authorization through 2027 were highlighted, along with a quarterly dividend increase [6]. Strategic Adjustments - Essent raised its quota share reinsurance level to 25%, which may increase volatility in ceded premiums and affect reported margins, aimed at optimizing capital efficiency without compromising credit risk management [7].

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net income of $164 million, down from $176 million a year ago, while diluted earnings per share increased to $1.67 from $1.65 [4][9] - The year-to-date return on equity was 13% as of September 30, 2025 [4] - Consolidated cash and investments totaled $6.6 billion with an annualized investment yield of 3.9% [6][7] Business Line Data and Key Metrics Changes - The U.S. mortgage insurance in force was $249 billion, a 2% increase year-over-year [5][9] - The mortgage insurance net premium earned for Q3 2025 was $232 million, including $15.9 million from Essent Re [10] - The average base premium rate for the U.S. mortgage insurance portfolio remained at 41 basis points, while the average net premium rate decreased by one basis point to 35 basis points [10] Market Data and Key Metrics Changes - The 12-month persistency rate was 86%, unchanged from the previous quarter [5][9] - The default rate on the U.S. mortgage insurance portfolio increased to 2.29%, up 17 basis points from the previous quarter [10] Company Strategy and Development Direction - The company maintains a conservative capital strategy to navigate market volatility while allowing for strategic growth investments [7][14] - A new $500 million share repurchase authorization was approved, running through year-end 2027, indicating a commitment to returning capital to shareholders [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, benefiting from favorable credit trends and the current interest rate environment [4] - The company anticipates that the current level of mortgage rates will support elevated persistency in the near term [5] - Management highlighted the strong credit quality of the insurance in force, with a weighted average FICO of 746 [5] Other Important Information - The company repurchased nearly 9 million shares for over $500 million year-to-date through October 31, 2025 [8] - The estimated annual effective tax rate was increased from 15.4% to 16.2% due to withholding taxes incurred on a dividend [11] Q&A Session Summary Question: Credit trends and provisions - Management noted that the average loan size has increased, which impacts provisions when larger loans default [16] Question: Claims amount and severity - Management indicated that fluctuations in claims are dependent on document processing and that severity remains below reserves [18] Question: Seeded premiums and reinsurance transactions - Management explained that seeded premiums will vary based on default and provision activity, with seasonal trends expected [22] Question: Tax rate expectations - Management suggested a tax rate of around 16% going forward, influenced by capital distributions to shareholders [24] Question: Severity rates and long-term expectations - Management stated that while severity rates have increased, the overall risk remains low, and they are well-capitalized to handle potential losses [30][34] Question: Underwriting guardrails and credit score changes - Management reassured that current underwriting standards remain stringent and that any changes in credit score requirements by GSEs have not yet been implemented [42][45] Question: Upstreaming capital from MI subsidiary - Management indicated plans for consistent dividends from the MI subsidiary, with potential for a larger dividend in Q4 [48] Question: Diversification and growth avenues - Management discussed the performance of the Title business and indicated that while it is still small, it is being developed as a potential growth area [50]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $164 million, a decrease from $176 million a year ago [4] - Diluted earnings per share were $1.67, compared to $1.65 a year ago [5] - The year-to-date return on equity was 13% through Q3 [5] - Consolidated cash and investments totaled $6.6 billion with an annualized investment yield of 3.9% [7] Business Line Data and Key Metrics Changes - The U.S. Mortgage insurance in force was $249 billion, a 2% increase year-over-year [5] - The mortgage insurance net premium earned for 2025 was $232 million [13] - The average base premium rate for the U.S. Mortgage insurance portfolio was 41 basis points, consistent with the previous quarter [14] - The default rate on the U.S. Mortgage insurance portfolio was 2.29%, up from 2.12% in the previous quarter [15] Market Data and Key Metrics Changes - The twelve-month persistency rate was 86%, flat from the previous quarter [6] - The weighted average FICO score was 746, and the weighted average original LTV was 93% [6] Company Strategy and Development Direction - The company maintains a conservative capital strategy to navigate market volatility while allowing for strategic growth investments [8] - A new $500 million share repurchase authorization was approved, running through year-end 2027 [9] - The company is focused on returning capital to shareholders while balancing investments in the business [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, benefiting from favorable credit trends and the interest rate environment [4] - The company believes that the substantial home equity embedded in its in-force book will mitigate ultimate claims [6] - Management indicated that the credit quality remains strong, with no significant concerns at the current time [25] Other Important Information - The company repurchased nearly 9 million shares for over $500 million year-to-date through October 31 [8] - The average loan size has increased to close to $300,000, impacting provisions for losses [24] Q&A Session Summary Question: Credit trends and provisions - Management noted that the average loan size has increased, which affects provisions for losses, but there are no significant concerns regarding credit quality [24][25] Question: Claims amount and severity - Management indicated that fluctuations in claims are normal and that severity continues to be below reserves [27] Question: Ceded premiums and reinsurance transactions - Management explained that ceded premiums will fluctuate based on seasonal activity and the quota share increase [30][32] Question: Tax rate changes - The increase in the estimated annual effective tax rate was attributed to withholding taxes on dividends [34] Question: Severity rates and long-term expectations - Management stated that while severity rates have increased, they do not expect a significant rise in the long term [41][42] Question: Underwriting guardrails and credit score requirements - Management confirmed that current GSE systems have not changed, and there are no signs of loosening credit standards [62][66] Question: Upstreaming capital from MI subsidiary - Management indicated plans for consistent dividends from the MI subsidiary, with potential for a larger dividend in Q4 [70][71] Question: Title business performance and growth avenues - Management stated that the title business is performing as expected and remains focused on the MI business for cash flow [73][78]