Essent Stock Performance

ESNT
 Stock
  

USD 40.09  0.50  1.26%   

Essent has a performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.2177, which means a somewhat significant risk relative to the market. Let's try to break down what Essent's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Essent will likely underperform. Although it is important to respect Essent Group historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Essent Group technical indicators, you can presently evaluate if the expected return of 0.0758% will be sustainable into the future. Essent Group right now shows a risk of 2.12%. Please confirm Essent Group variance and potential upside to decide if Essent Group will be following its price patterns.
  
Essent Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Essent Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Essent is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors. ...more

Essent Price Channel

Begin Period Cash Flow102830000.00
Total Cashflows From Investing Activities-583167000.00

Essent Relative Risk vs. Return Landscape

If you would invest  3,827  in Essent Group on September 4, 2022 and sell it today you would earn a total of  132.00  from holding Essent Group or generate 3.45% return on investment over 90 days. Essent Group is currently generating 0.0758% in daily expected returns and assumes 2.1218% risk (volatility on return distribution) over the 90 days horizon. In different words, 18% of stocks are less volatile than Essent, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Essent is expected to generate 1.69 times less return on investment than the market. In addition to that, the company is 1.42 times more volatile than its market benchmark. It trades about 0.04 of its total potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.09 per unit of volatility.

Essent Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Essent's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Essent Group, and traders can use it to determine the average amount a Essent's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0357

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Estimated Market Risk
 2.12
  actual daily
 
 18 %
of total potential
 
1818
Expected Return
 0.08
  actual daily
 
 1 %
of total potential
 
11
Risk-Adjusted Return
 0.04
  actual daily
 
 2 %
of total potential
 
22
Based on monthly moving average Essent is performing at about 2% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Essent by adding it to a well-diversified portfolio.

About Essent Performance

To evaluate Essent Group Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Essent generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Essent Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Essent Group market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Essent's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
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 was founded in 2008 and is based in Hamilton, Bermuda. Essent operates under InsuranceSpecialty classification in the United States and is traded on New York Stock Exchange. It employs 349 people.

Things to note about Essent Group

Checking the ongoing alerts about Essent for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Essent Group help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Essent Alerts

Equity Alerts and Improvement Suggestions

Over 96.0% of the company shares are held by institutions such as insurance companies
Continue to Investing Opportunities. You can also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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When running Essent Group price analysis, check to measure Essent's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Essent is operating at the current time. Most of Essent's value examination focuses on studying past and present price action to predict the probability of Essent's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Essent's price. Additionally, you may evaluate how the addition of Essent to your portfolios can decrease your overall portfolio volatility.
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Is Essent's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essent. If investors know Essent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Essent Group is measured differently than its book value, which is the value of Essent that is recorded on the company's balance sheet. Investors also form their own opinion of Essent's value that differs from its market value or its book value, called intrinsic value, which is Essent's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essent's market value can be influenced by many factors that don't directly affect Essent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Essent's value and its price as these two are different measures arrived at by different means. Investors typically determine Essent value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essent's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.