Why MGIC Investment Shares Surged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of mortgage insurer MGIC Investment (NYSE: MTG  ) climbed 15% today after its quarterly results topped Wall Street expectations.

So what: The stock has soared over the past year on a string of better-than-expected quarters, and today's surprise third-quarter profit -- $0.04 versus the consensus of a $0.10 loss -- only reinforces that trend. In fact, the percentage of loans that were delinquent, excluding bulk loans, was 9.69%, versus 12.34% in the previous quarter, giving investors plenty of good vibes over MGIC's profitability going forward. 

Now what: Don't expect the operating momentum to slow anytime soon. "I am pleased to report that the favorable economic trends we have been benefiting from relative to home price appreciation and employment over the last several quarters have continued," Chairman and CEO Curt Culver said. "I am encouraged by the progress we have made this year regarding new business writings and am pleased with the quality and performance of the business written since 2009." Of course, with the stock up a staggering 380% over the past year and trading at a price-to-book of 3.5, much of that progress might already be baked into the price.

More reliable ways to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2686073, ~/Articles/ArticleHandler.aspx, 10/21/2014 3:49:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement