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).
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
Radian Group – Last 12 Months
Radian Group – Last Five Years
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.