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Here's Why Radian (RDN) is a Strong Value Stock

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Radian (RDN)

Founded in 1977 and headquartered in Philadelphia, PA, Radian Group Inc. is a credit enhancement company which supports homebuyers, mortgage lenders, loan servicers and investors with a suite of private mortgage insurance and related risk-management products and services. Radian trades on the New York Stock Exchange under the symbol RDN.

RDN sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Insurance - Multi line industry's P/E of 9.8X, shares of Radian are trading at a forward P/E of 5.4X. RDN also has a PEG Ratio of 1.1, a Price/Cash Flow ratio of 5.9X, and a Price/Sales ratio of 3.1X.

A company's earnings performance is important for value investors as well. For fiscal 2022, one analyst revised their earnings estimate higher in the last 60 days for RDN, while the Zacks Consensus Estimate has increased $0.58 to $4.18 per share. RDN also holds an average earnings surprise of 29.5%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding RDN to their portfolios.


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