Essent Group could regain its upward trend after having ran out of steam.
The group enjoys upward revisions in earnings per share and growth prospects. Indeed, the valuation of the security is attractive with a P/E ratio of 10.3x for 2016. Analysts covering the stock target on average a 21% appreciation potential.
Graphically, the stock shows a bullish configuration in the medium and long term. Prices declined slightly in the short term, which brang it on the USD 23 support, tested several times before. This threshold is likely to allow a significant technical rebound.
Consequently, we expect an appreciation towards USD 25.7. A stop loss will protect the position under the current support.
Essent Group Ltd. is a holding company. The Company, through its wholly owned subsidiaries, offers private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. In addition to offering mortgage insurance, it provides contract underwriting services on a limited basis through CUW Solutions, LLC. It also offers mortgage-related insurance and reinsurance through its Bermuda-based subsidiary, Essent Reinsurance Ltd. It provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Its products and services include mortgage insurance, contract underwriting, and Bermuda-Based insurance and reinsurance. It offers two types of private mortgage insurance, namely primary and pool. Its subsidiaries also include Agents National Title Holding Company and Boston National Holdings LLC.
ESSENT GROUP LTD. 
