Bull’s Eye Report: Radian Group (RDN)

After this morning's action, RDN is a buy

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Radian Group RDN Thrifts & Mortgage Finance 8.1 +112.92% $12.63

 Why We Like The Stock:

Radian Group (RDN) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. RDN recently hit highs around $14.50 in early August before pulling back smoothly to the $13 area. RDN was caught by its 50-day moving average, and looks to have based a bit higher. We like the way RDN trends, and we like that it is exiting the oversold stochastic this morning. We would be buyers of RDN at current prices for a run back to $14.50.

We Would Be Buyers:

At the current price (~$13.21).

Company Profile:

Radian Group Inc.  is a credit enhancement company with a primary strategic focus on domestic residential mortgage insurance on first-lien loans (first-lien). The company has two operating business segments: mortgage insurance and financial guaranty. The company’s mortgage insurance segment provides credit-related insurance coverage, principally through private mortgage insurance, and risk management services to mortgage lending institutions. The company’s financial guaranty segment previously offered direct insurance and reinsurance on credit-based risks, and also offered credit protection on various asset classes through financial guarantees and credit default swaps (CDS).

Stock Rating: 8.1

The stock rating indicates the combined score of our proprietary earning strength and company performance models. The rating scale is 0 – 10 with 10 being the highest.

Radian Group – Last Three Months

rdn 1 Bulls Eye Report: Radian Group (RDN)

Radian Group – Last 12 Months

rdn 2 Bulls Eye Report: Radian Group (RDN)

Radian Group – Last Five Years

rdn 3 Bulls Eye Report: Radian Group (RDN)

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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