Essent Group – Regional stocks looking strong in the U.S.
Essent Group, the Bermuda-domiciled financial company, serves the housing finance industry by offering mortgage insurance, reinsurance and risk management products to mortgage lenders and investors to support homeownership.
Essent’s strength is derived from its strong capital position, consistent best-in-class customer service, and collaborative approach to building long-term business relationships.
From a technical perspective, we are looking at this as a pure gap-fill, trading up the ascending range to the top of the wedge, with a price target of $43. Latest results show a price/earnings ratio of 9.37. Reported net income for the quarter ended June 30, 2018 of $111.8m (EPS $1.14), compared to $72.1m (EPS $0.77) for the quarter ended June 30 2017. This is a strong buy recommendation.