MGIC Investment Corp. MTG is set to report third-quarter 2015 results on Oct 15, before the market opens. Last quarter, the company posted a positive earnings surprise of 21.74%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Past Quarter
With housing market recovery boosting the demand for mortgages, new insurance written is likely to have witnessed improvement in the third quarter, though will remain lower compared to the first half of the year.
The to-be reported quarter is expected to witness lower delinquency as the housing market fundamentals experience steady improvement.
However, a sustained low interest rate level will continue to pressure investment results in the to-be reported quarter.
Earnings Whispers
Our proven model does not conclusively show that MGIC Investment will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: MGIC Investment has -4.35% Earnings ESP. This is because the Most Accurate estimate stands at 22 cents, while the Zacks Consensus Estimate is pegged at 23 cents.
Zacks Rank: MGIC Investment holds a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, an ESP of -4.35% makes surprise prediction difficult.
Stocks to Consider
Here are some companies from the financial sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
The Chubb Corp. CB has an Earnings ESP of +13.51% and a Zacks Rank #1 (Strong Buy). The company is slated to come up with the third-quarter earnings report on Oct 21.
The Travelers Companies, Inc. TRV has an Earnings ESP of +13.88% and a Zacks Rank #1. The company is slated to come up with the third-quarter earnings report on Oct 21.
PartnerRe Ltd. PRE, Earnings ESP of +70.82% and a Zacks Rank #1. The company is scheduled to report third-quarter earnings on Oct 26.
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