In this overextended market, finding a stock with a steady gain is a plus. Sometimes slow and steady really does win the race. There are so many stocks today that have rocketed off into the stratosphere and they are not investible. Others that have not participated in the rally are equally avoided because there is no spark.
NEW DIRECTIONAL CALL PLAYS
ESNT - Essent Group Ltd - Company Profile
Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. The company also provides information technology maintenance and development services; customer support-related services; and contract underwriting services. It serves originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions, and other lenders.
Company description from FinViz.com.
Essent reported earnings of 65 cents compared to estimates for 58 cents. Revenue was $121.3 million. For 2015 they saw earnings rise 65.1%. The current growth estimate for 2016 is 37.8%. While that is less than 2015 rate the relatively young company is still in a growth spurt. It is easy to show big percentages in the early years since there were little to no earnings when you started. The company began in 2008
Over the last month analyst consensus estimates have risen from 60 to 62 cents and full year estimates have risen from $2.27 to $2.34.
Shares have risen $5 over the last $3 weeks but not at the frantic pace of some other high visibility stocks. Essent is moving slowly higher a few cents a day. When the eventual profit taking appears in the broader market, Essent could be less impacted than some other stocks.
Options are cheap and we can buy well into the future for just a couple dollars.
Buy April $35 call, currently $2.05, initial stop loss $30.85.
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays