Latest news with #EnactHoldings
Yahoo
10-05-2025
- Business
- Yahoo
4 Stocks to Watch That Recently Declared Dividend Hikes Amid Volatility
Economic data released this week doesn't paint a rosy picture, raising concerns over the economy slipping into a recession in the coming months. Although President Donald Trump temporarily paused reciprocal tariffs last month, which helped markets rebound from their earlier lows, Wall Street remains volatile. Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are Atkore Inc. ATKR, Enact Holdings, Inc. ACT, Pool Corporation POOL and American Water Works Company, Inc. AWK. The Commerce Department said earlier this week that the U.S. economy contracted in the first quarter of 2025. Gross domestic product (GDP) fell 0.3% in the first three months of the year, recording the first quarter of negative growth since the first quarter of 2022, and missing analysts' expectations of 0.4% growth. This came as fears grew that Trump's tariffs could weigh on the economy's health. Trump temporarily paused tariffs for 90 days, which saw a sharp rise in imports in the final month of the first quarter as consumers bought imported goods at a higher rate. Imports jumped 41.3% for the quarter, while exports grew just 1.8%. Consumer spending also slowed as people saved more, anticipating tougher days ahead. Besides, there was also a significant decline in federal expenditures, which played a major role in the sluggish GDP figures. Investors are worried that the economy could shrink further once the tariffs go into effect. Consumer confidence fell 7.9 points to 86 in April to hit a five-year low. Needless to say, investors aren't confident about the economy and with the picture on trade negotiations still unclear, markets could remain volatile for a longer period. Given the uncertainty, it would be a wise decision to invest in stocks that pay dividends. These companies usually remain stable and consistently pay out dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that pay high dividends often outperform those that do not. Atkore Inc. manufactures and distributes electrical raceway products. It offers steel tubes and pipes, electrical conduit, armored wire and cable, cable trays, metal framing systems and building components. Atkore has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. On April 30, Atkore announced that its shareholders would receive a dividend of $0.33 a share on May 28. ATKR has a dividend yield of 2%. Over the past five years, Atkore has increased its dividend once, and its payout ratio presently sits at 12% of earnings. Check Atkore's dividend history here. Enact Holdings, Inc. operates principally through its wholly owned subsidiary Genworth Mortgage Insurance Corporation, which provides U.S. private mortgage insurance. Enact Holdings has a Zacks Rank #3. On April 30, Enact Holdings declared that its shareholders would receive a dividend of $0.21 a share on June 11. ACT has a dividend yield of 2.07%. Over the past five years, Enact Holdings has increased its dividend six times, and its payout ratio presently sits at 16% of earnings. Check Enact Holdings' dividend history here. Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, POOL is a leading regional wholesale distributor of irrigation and landscape products. Pool Corporation carries a Zacks Rank #3. On April 30, Pool Corporation announced that its shareholders would receive a dividend of $1.25 a share on May 29. POOL has a dividend yield of 1.64%. Over the past five years, Pool Corporation has increased its dividend six times, and its payout ratio presently sits at 46% of earnings. Check Pool Corporation's dividend history here. American Water Works Company, Inc. provides essential water services to more than 14 million customers in 24 states and has an employee strength of 6,700. AWK also acquires small water service providers to expand its customer base. American Water Works carries a Zacks Rank #2 (Buy). On April 30, American Water Works declared that its shareholders would receive a dividend of $0.83 a share on June 3. AWK has a dividend yield of 2.08%. Over the past five years, American Water Works has increased its dividend six times, and its payout ratio presently sits at 57% of earnings. Check American Water Works' dividend history here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pool Corporation (POOL) : Free Stock Analysis Report American Water Works Company, Inc. (AWK) : Free Stock Analysis Report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
05-05-2025
- Business
- Business Insider
Enact Holdings downgraded to Market Perform from Outperform at Keefe Bruyette
Keefe Bruyette downgraded Enact Holdings (ACT) to Market Perform from Outperform with an unchanged price target of $39. The firm cites valuation for the downgrade, saying the shares are now trading near its price target The analyst remains constructive on Enact's longer-term prospects, but thinks the shares are fairly valued at the current juncture. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Yahoo
20-04-2025
- Business
- Yahoo
Is Enact Holdings, Inc. (ACT) the Best Under-the-Radar Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Enact Holdings, Inc. (NASDAQ:ACT) stands against other best under-the-radar stocks to buy now. The market environment is currently dominated by headlines about mega-cap tech stocks and the volatility induced by tariffs. The recent trade war ignited by the U.S. President's new tariffs has sent ripples throughout the globe, affecting all the listed major stocks. Savvy investors, however, are increasingly turning towards comparatively less famous equities that offer significant growth potential. Though the market indices have experienced a modest decline owing to the tariff war between the U.S. and China, a few under-the-radar stocks have shown resilience. READ ALSO: Recent market fluctuations and their resulting impact on the market indices stress the need to explore beyond the usual suspects. We cannot always look up to the value stocks, as the reports from the past three decades have shown that growth stocks outperform them. The changing trends point towards substantial opportunities outside the traditional investments in sectors and stocks that are yet to be covered by the financial media headlines. On the other hand, the overgrown influence of a few large caps has increased the concerns regarding market concentration and the long-term sustainability of such below-the-radar stocks. According to Barron's, a university-conducted study revealed that a few disproportionately small subsets of publicly listed companies had been responsible for the total net wealth creation in the U.S. equity market since 1926. Median stock, meanwhile, has historically underperformed risk-free assets. The revelation necessitates identifying emerging companies with traits of future market leadership before they get flooded with institutional capital. Though the recent economic shifts hurt many large caps, they also offer a favorable backdrop for identifying emerging stocks. For instance, the Federal Reserve's change in interest rate cuts has reduced borrowing costs, increased credit availability, and contributed to a conducive climate for some companies to thrive in the market. Undercoverage of these high-potential companies leads to informational inefficiencies, which retail and institutional investors perceive as opportunities. Many of these companies maintain a strong growth potential within their respective industries that aligns with the long-term shareholder value creation. Sometimes, the sectoral shifts can also favor the distribution of growth opportunities for a few stocks over others. For instance, after retaliation from China, the biggest importer of technologies and related materials, the U.S. gave tariff exemptions to electronics. This led to growth in the value of many large-cap tech stocks. However, the subsequent announcement from President Trump that these exemptions are only temporary has caused investors to rethink their investment decisions. It underscores the need to look for under-the-radar stocks that combine growth potential and not-yet-exploited quality. In this regard, we have compiled a list of 10 under-the-radar stocks guided by fundamental screening and long-term earnings potential. In addition to financial stability, the stocks on our list demonstrate attributes common in past outperformers before their breakout phases. Our article employs a screening methodology to identify the best under-the-radar stocks with strong fundamentals. Primarily, our criteria include market capitalization below $10 billion to limit our search between micro, small, and mid-cap classifications. We also included only those stocks with positive earnings per share (EPS) growth over the past five years, reflecting consistency in profit-making. We have set the institutional ownership cap to 30% to pick those stocks with limited analyst coverage and more significant discovery potential. Our article further excluded stocks with a forward price-to-earnings (P/E) ratio of more than 20 to target relatively undervalued equities. Additionally, all the stocks have a debt-to-equity ratio under 1 to ensure a conservative capital structure, thereby ensuring financial stability. We compiled a list of 25 stocks and then listed 10 stocks that were most popular among hedge funds, according to Insider Monkey's database of Q4 2024. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 15, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a laptop displaying loan documents, representing the company's residential mortgage guaranty insurance and mortgage loans. Based in North Carolina, Enact Holdings, Inc. (NASDAQ:ACT) provides private mortgage insurance for U.S. lenders and mortgage originators. Formerly, Genworth Mortgage Insurance, Enact Holdings, Inc. (NASDAQ:ACT) reduces lender risk on low-down-payment loans and supports homeownership. The company leverages risk analytics and capital strength to enhance credit quality and operational efficiency, thus gaining a competitive advantage over its peers. Supportive housing market trends and the company's exposure to regulatory capital frameworks strengthen its position in mortgage finance. The company achieved a record-high operating income of $718 million for 2024. However, Enact Holdings, Inc. (NASDAQ:ACT) also experienced an increase in delinquencies of 6% in the fourth quarter. Due to hurricanes, the company expects a decline in delinquencies in future quarters. It also surpassed its capital return guidance by returning $354 million to shareholders in 2024. In addition, the company completed issuing $750 million in senior notes, marking its first investment-grade debt issuance as a public company. The issuance has saved the company $2 million in annual interest expense. For 2025, the company targets revenue growth of 5%. With just 18.98% institutional ownership, Enact Holdings, Inc. (NASDAQ:ACT) is favored by 26 hedge funds in the Insider Monkey database at the end of Q4 2024. With such modest institutional interest, the company continues to operate under the radar, earning a place among the strongest underappreciated picks in niche financial sectors. Overall, ACT ranks 1st on our list of best under-the-radar stocks to buy now. While we acknowledge the potential of ACT, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ACT but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
