Published on 16 Sep 2023 on Zacks via Yahoo Finance
Radian (RDN) Up 35% YTD: Should You Buy It for Better Return?
Radian Group’s RDN shares have gained 34.8% year to date against the industry’s decline of 5%. The Finance sector has risen 6.3% and the Zacks S&P 500 index has gained 17.5% in the said time frame. With a market capitalization of $4 billion, the average volume of shares traded in the last three months was 1 million.Improving mortgage insurance portfolio, declining claims, the well-performing homegenius segment, solid capital position and effective capital deployment continue to drive this Zacks Rank #2 (Buy) insurer.The insurer’s earnings have increased 19.5% in the past five years, better than the industry average of 5.5%. RDN has a solid surprise history, beating earnings estimates in each of the last seven reported quarters.Radian’s return on equity for the trailing 12 months is 17.3%, which compares favorably with the industry’s 10.5%, reflecting the company’s efficiency in utilizing shareholders’ funds.
