|Bid||14.02 x 1300|
|Ask||14.07 x 3100|
|Day's Range||14.01 - 14.15|
|52 Week Range||11.56 - 14.97|
|Beta (5Y Monthly)||1.49|
|PE Ratio (TTM)||7.89|
|Earnings Date||Feb 03, 2020|
|Forward Dividend & Yield||0.24 (1.71%)|
|Ex-Dividend Date||Nov 05, 2019|
|1y Target Est||17.23|
Riding high on its growing top line, reducing costs and an impressive capital position, CNO Financial (CNO) is well placed to benefit its investors.
Dividend paying stocks like MGIC Investment Corporation (NYSE:MTG) tend to be popular with investors, and for good...
Financial stocks are among the market sectors facing an extremely uncertain future in 2020.Last year saw the sector pushed and pulled by factors including three Federal Reserve rate cuts, waffling on the U.S.-China trade deal and weak but eventually improving economic data from some of the world's largest economies. Financial stocks still managed a 29% gain amid the turmoil.But 2019 might seem like a cakewalk compared to what's ahead. Low interest rates still are hampering commercial banks, and no one is quite sure what's in store from the Fed. Meanwhile, the U.S. and China have a much more difficult path to finish the job started by their "phase-one" trade deal, and the 2020 election cycle will have Wall Street guessing all year at whether bank stocks will enjoy another accommodative presidential term.As a result, analysts' top picks in the financial sector aren't your usual "who's who" of big banks and insurers. While there are a couple of well-known consumer names, emerging fintech firms and smaller financial companies are catching the analyst community's eye.Here, then, are the seven best financial stocks to buy for 2020. We've used the Stock Screener tool from TipRanks to narrow down the sector's most compelling investment opportunities, as seen by Wall Street's analysts. All of these stock picks are so overloaded with bullish opinions, in fact, that they boast a "Strong Buy" consensus rating. Take a look. SEE ALSO: The 20 Best Stocks to Buy for 2020
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
MGIC Investment Corporation (NYSE: MTG) has announced plans to release its 4th quarter 2019 financial results before the market opens on Tuesday, February 4, 2020. A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time to discuss the Company's results for the quarter ended December 31, 2019.
When world events hit the news, investors start to get nervous. Will a Mid-East airstrike push stocks lower, or oil higher? Will the change last, or will trading revert to normal after a few days? These normal questions, but they can sometimes push rational investors into irrational trades.CNBC crunched some numbers on the effects of world events and financial market price movements, and found an interesting patter for stock investors. Using data covering the past 30 years, the analysis showed that after oil, stocks show the best positive gain from “crisis trades.” For stocks purchased one day before an event occurred, the average return on the S&P 500 was 0.9% after one month – and 2.8% after three months.That’s a pattern to keep in mind, after news of the US airstrike in Baghdad that killed a top Iranian general. Importantly, major investment banks are giving similar advice to their clients. In a published note, Evercore ISI said to investors, “Barring an escalation, the backdrop for equities remains favorable.”Of course, the news is like lightning, and you never know when it will strike – so it’s best to be prepared, and keep your portfolio loaded up with stocks that show plenty of upside. We’ve used the TipRanks Stock Screener to sort over 6,400 publicly traded equities, setting the filters to show us small- to mid-cap companies, with Strong Buy consensus ratings, and upwards of 20% growth potential. Here are the results – three financial stocks that some of Wall Street’s best analysts are recommending.Focus Financial Partners (FOCS)First up is Focus Financial Partners, a wealth management firm that went public in summer of 2018. Focus provides investment management for independent firms, with a partnership arrangement. Focus’ model offers economies of scale in asset management, asset allocation, financial planning, and tax preparation to its partners.The company’s earnings have showed gains in every quarter reported since the IPO, and beaten the forecasts in three of the last four. In Q3 2019, the most recent reported, the company posted total revenues of $316.6 million, for a year-over-year gain of 34%. At the bottom line, the adjusted EPS, at 62 cents, also showed a 34% yoy gain. It was a good report, and prompted management to reiterate the company’s 20% annual growth target.5-star analyst Daniel Perlin, of RBC Capital, sees plenty of reason to believe that FOCS will continue growing. In his analysis of the firm’s strengths, the analyst noted, “The ability to accelerate organic growth at acquired firms. Focus’s services can often lead to accelerating revenue growth at acquired firms, in our estimation. In 2017, 55 partner firms utilized an average of at least four of Focus’s value-added services. Furthermore, partially reflecting these services, the annual revenue growth of acquired partner firms accelerates from a year 1 average of 5.7% to 9.5% by year 5.” Perlin’s Buy rating on FOCS is backed by a $37 price target, indicating confidence in 26% upside growth over the coming 12 months. (To watch Perlin’s track record, click here)Also writing for the bulls, Jefferies analyst Gerald O'Hara says, "Although organic growth will remain near-term volatile as the Company scales, FOCS' established platform in the fragmented and consolidating wealth mgmt universe is unique and differentiated. The ability to drive LT growth, offer resources, and steadily increase earnings 20%+ per annum is unique and will drive deleveraging. FOCS is positioned to be a partner of choice within a growth market with upside to current valuations." O'Hara rates FOCS shares a Buy alongside a price target of $34. (To watch O'Hara's track record, click here)All in all, Focus Financial maintains its Strong Buy consensus rating with 4 recent analyst reviews – including 3 Buys and 1 Hold. Shares are modestly priced, at $29.83, and the $37.25 average price target suggests an upside of 25%. (See Focus Financial stock analysis at TipRanks)Sterling Bancorp (STL)The “too big to fail” banks get the headlines, but smaller regional banks are taking up a large and growing part of the industry market share. Sterling Bancorp is one such company. Based in New York and serving the metropolitan New York City area along with the Hudson River Valley through its Sterling National Bank subsidiary, the company caters to small businesses and individuals. Sterling may be a smaller bank, but the company still has a market cap of $4.24 billion, and the bank controls assets exceeding $31.3 billion.Sterling offers investors plenty of inducement. For starters, STL shares gained 27% in 2019, and to add income to share appreciation, the company pays out a modest 1.3% dividend. Furthermore, the earnings show that this growth is sustainable: the company’s most recent quarterly earnings, for Q3 2019, reported strong numbers. The EPS of 59 cents beat the forecast by over 9%. Revenues also beat the estimates, and hit $268.09 million. The company boasted a 15% gain in commercial loan business.Writing from B. Riley FBR, 4-star analyst Steve Moss says, “We expect Sterling Bancorp 2020 results will show significant improvement over 2019 as the bank's balance sheet transformation generates higher quality earnings… STL's stock has outperformed peers in 2019... Our Buy rating reflects STL's attractive franchise, strong growth prospects as accretion runs-off, and attractive valuation at 10.1x our 2020 estimate of $2.10 and 10.9x our ex-accretion estimate of $1.95.”Moss backs up his Buy rating and optimistic forecast with an aggressive $26 price target indicating a 24% upside potential. (To watch Moss’s track record, click here.)Sterling’s analyst consensus rating is unanimous – the stock has received 5 positive reviews in the past two months. Shares are price at an affordable $20.51; the average price target of $26.30 suggests an upside potential of 28%. (See Sterling Bancorp stock analysis on TipRanks)MGIC Investment Corporation (MTG)MGIC, whose initials are an abbreviation of ‘Mortgage Guaranty Insurance Corporation,’ lives in the home-loan niche. A strong economy and rising wages have been good to MGIC; the company provides private mortgage insurance, and sales naturally go up in good times.A strong third quarter demonstrates MGIC’s favorable position. Revenues gained 9.6% year-over-year and reached $318.4 million, while EPS – although flat yoy at 48 cents – beat the estimates by 12%. The company’s premium income grew 7% in the quarter, and investment income gained 17%. Even better for MTG, the company saw a 31% year-over-year increase in new insurance written. That important metric came in at $19 billion.There were other growth indicators, which taken together put MGIC on a firm foundation. Employment and wages are rising, and housing demand with them. But also, delinquency rates are down as borrowers are better able to afford their home loans. Overall, the generally positive industry atmosphere has pushed MTG to a 31% 12-month gain.Weighing in from MKM Partners, 5-star analyst Harry Fong wrote of MTG, “New insurance written increased nearly 32% this quarter aided by stronger refinancing activity that also purchase mortgage insurance. Given the current low interest rate environment, refi’s jumped in the quarter. That not only benefited net earned premiums, but also new business… Looking ahead, there continues to be ample talk from Washington about changing our mortgage system that may allow for more growth in the private sector, but nothing done yet. In time, we do expect to see more growth as the folks in Washington begin to introduce changes to the current marketplace.”Fong showed his bullish side with a Buy rating on the stock and a price target of $18. His target implies a potential upside of 28%. (To watch Fong’s track record, click here)With an average price target of $17.63 and a current trading price of $13.91, MTG shares show a potential for 27% upside growth this year. The stock has a Strong Buy consensus rating based on 4 reviews – 3 are Buys and 1 is a Hold. (See MGIC’s stock analysis at TipRanks.)
The Zacks Analyst Blog Highlights: RenaissanceRe, MGIC Investment, Hallmark Financial Services and Trupanion
Rising insurance premium rates, solid capital position, changes to product portfolio and stable interest rate should drive insurance stocks in 2020.
Strong U.S. economy, positive developments on several macroeconomic matters and the Fed's indication of a pause on rate cuts are expected to support the finance sector's performance in 2020.
Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying before last year's Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the […]
Heading into 2020, we suggest investors to add 20 stocks to their portfolio that are currently priced under $20, backed by a solid Zacks Ranks and earnings expectations.
Heading into the last lap of 2019, it’s fair to say that it’s been quite a year for investors. Markets are up – way up. The Dow, S&P 500, and NASDAQ have posted gains for the year of 19%, 25%, and 29%, respectively, and the year’s not quite over yet.However, Deutsche Bank is getting slightly nervous. The US markets have risen so far, and so fast, that the German banking firm’s chief global strategist, Binky Chadha, sees little or no room for further growth saying, “Valuations are high, higher than they’ve been 90% of the time over the past five years.” He adds that the economy is slowing down, in a “clear, unambiguous, and broad-based” fashion, and puts most of the blame for that on President Trump’s trade policies.While there are clear indications of slowdowns outside of the US – in Canada for example, where it lost 70,000 jobs last month, or in France, where strikes have paralyzed Paris – the American economy is continuing to chug along. The November jobs report, released last week, allayed fears of a slowdown with excellent jobs numbers, and brought the 3-month rolling average of jobs created to more than 200,000. Wages were also up, and unemployment ticked down to a 50-year low.Still, Chadha does make a good point. With US markets having climbed to record highs, there is some feeling that they now have nowhere to go – but down. It’s a worrisome sentiment, made more so by the fact that markets are frequently moved by sentiment.But Deutsche Bank, as an institution, offers some balm for worried investors. We’ve used the TipRanks Stock Screener tool to pull up three Strong Buy stocks, for which Deutsche Bank analysts expect to see more than 25% upside potential over the next 12 months. They inhabit a variety of niches, and offer a potential safeguard for investors’ portfolios. Let’s delve deeper, and find out why.Eldorado Resorts (ERI)General prosperity is good for leisure companies, and Eldorado is no exception. The company operates resort hotels and casinos in 11 states, with a total of 23 properties. Look for that number to expand in the near future, as the company’s shareholders have approved in November a deal to take over Caesars. The merger will create the largest casino operator in the US.Looking into the details, Eldorado will be paying a total of $17.3 billion to acquire Caesars. The deal includes an $8.5 billion new issue of common stock, needed to fund the equity portion of the transaction, and $8.8 billion worth of debt that Eldorado will take over from Caesars. Shareholders of both companies voted overwhelmingly in favor of the acquisition. Since the shareholder votes in mid-November, the deal is on track for completion in 1H20.The takeover is one of the largest such moves in the history of the US gaming industry. Eldorado is paying more than quadruple its own market cap – approximately $4.12 billion – to close the deal. Early indications are favorable, as ERI is trading modestly higher since the approval. The deal was pushed hard by billionaire investing guru Carl Icahn, the largest individual shareholder in Caesars. A statement on Icahn’s website said, in reference to the Eldorado-Caesars deal, “This merger is the quintessential example of how an activist shareholder, working collaboratively with the board, can greatly enhance value for all stockholders.”Writing on ERI as part of a general review of the casino gaming sector, Deutsche Bank’s Carlo Santarelli takes a bullish stance. He is optimistic that “the CZR portfolio is likely to bring … growth for the combined entity into the double digits,” and identified ERI as “our top pick within the [gaming] group for 2020.”"Net-net, we believe ERI will benefit from sector leading same-store EBITDAR growth, driven by; 1) a healthy LV Strip backdrop, 2) sound regional consumer trends, 3) more limited competition, relative to 2019, 4) some Company specific dynamics within both the ERI and CZR portfolios that have been unheralded to date, and 5) material synergy generation. Given our pro forma modeling work and our available upon request ERI / CZR combined model, we believe these attributes are being valued at a material discount to peers, with shares offering a ~16% pro forma free cash flow yield on our 2021 estimates," the analyst concluded.Santarelli optimism on ERI is evidenced by his $66 price target, implying an upside of 25% to the stock, and his Buy rating. (To watch Santarelli’s track record, click here)Eldorado Resorts maintains a Strong Buy consensus rating, based on 4 Buy ratings and 1 hold given in the last few months. The stock has been gaining steadily since early September, and is up an impressive 45% so far this year. Shares are selling for $52.75, and the average price target of $59.75 suggests that there is still 13% upside potential to the stock. (See Eldorado stock analysis on TipRanks)Marvell Technology (MRVL)Moving to the semiconductor industry, we find Marvell. This is not one of the giants of the chip sector, but still brings in $2.9 billion annually, with a net income of $179 million in fiscal 2019. The Silicon Valley company has offices and design centers in 14 countries around the world.Marvell has benefited this year from a partnership with Samsung on 5G deployment. The collaboration gives Marvell access to the resources of the largest player in the semiconductor sector (or perhaps the second largest – Samsung and Intel have been trading the 1 and 2 slots for the last 18 months). In addition, Marvell will be able to tap into Samsung’s network among South Korea’s early adopters of 5G. For the long term, the partnership is focused on embedded and baseband processors for 5G base stations.In Q3, reported last week, the company’s top line revenues just missed the forecasts, coming in at $662 million against the estimate of $664 million. EPS was decent, however, with the 17-cent per-share income matching expectations.In recent months, Marvell has spent over $1 billion acquiring two smaller chip makers, Avera Semi and Aquantia. The spending was noticeable in the Q3 report, as the company’s cash on hand dropped by over $130 million while debt increased by nearly $400 million. The spending is hardly wasteful, however, as both acquisitions will help the company expand technology in the runup to 5G.5-star Deutsche Bank analyst Ross Seymore is bullish on Marvell’s prospects heading into 2020. He writes, “We continue to view the most-important metrics to be Marvell's progress on its 5G ramp and a cyclical return to normalcy in the Storage business, with both dynamics trending positively. Within 5G MRVL is executing on an aggressive initial production ramp at Samsung…”5G will be making more and more news in coming months, and Seymore sees MRVL well positioned to make gains. He puts a Buy rating and a $30 price target on the stock, suggesting an upside of 27%. (To watch Seymore’s track record, click here)Overall, Marvell’s Strong Buy consensus rating is based on 10 Buys and 2 Holds. The holds are left over from the dip in the chip industry at the end of 2018 and beginning of 2019 – the stock has risen steadily this year. The average price target of $29.50 indicates room for a 25% upside from the current share price of $23.52. (See Marvell stock analysis on TipRanks)MGIC Investment (MTG)A generally strong economy and rising wages should be good for loan companies, and MGIC helps to prove that proposition. MGIC stands for ‘Mortgage Guaranty Insurance Corporation,’ and as the name suggests, the company is in the home loan business. Specifically, it is a provider of private mortgage insurance. It’s an important niche, as the service is required for any mortgage in which the borrower cannot cover the full principle from existing assets.The third quarter earnings report bore this out. MTG reported EPS of 48 cents, flat year-over-year but 12% better than the forecast, while the revenues of $$318.4 million were up 96% yearly. Within the revenue data, premium income was up by 7% and investment income was up 17%. In a key metric, new insurance written, MTG saw an increase of 31.7% year-over-year, to over $19 billion.Strong performance was not the only positive. Delinquency rates were down, in line with overall strength in the US economy. As employment and wages rise, so does housing demand – but more importantly, so does borrowers’ ability to afford home loans. Taken together, all of this has pushed MTG shares to robust 35% year-to-date gains.4-star analyst Phil Stefano reviewed MTG for Deutsche Bank and wrote, “We increase our 4Q19 expectation… persistency pressure is likely to be sustained in the quarter given the pullback in interest rates. An improved outlook on new notices of default and stronger-than-expected IIF growth should help to drive some incremental strength in the sector with today's trading. Our long-term expectations for the sector remain and we forecast MGIC will deliver low-to-mid-teens operating returns and book value growth…”Stefano's $18.50 price target implies room for 30% share appreciation in the next year, to go along with his Buy rating. (To watch Stefano’s track record, click here)MTG has a unanimous consensus rating, a Strong Buy based on 3 positive reviews in the last couple of months. The stock is selling for $14.13, a low price for an upwardly bound stock with a solid business base, and the $18.17 average price target suggests a 28% upside potential. Check out these 5 ‘Strong Buy’ stocks that top Wall Street analysts recommend.
MGIC Investment Corporation (NYSE: MTG) today issued an Operational Summary of its insurance subsidiaries for the month of November 2019 for their primary mortgage insurance. The summary is also available on the company's investor website under Newsroom, Press Releases.
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