2 Reasons to Sell ESNT and 1 Stock to Buy Instead Adam Hejl Wed, October 14, 2026 at 11:00 AM EDT 2 min read ESNT -0.35% ^GSPC -0.91% Trade ESNT on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Since April 2026, Essent Group has been in a holding pattern, posting a small return of 1.8% while floating around $62.01. The stock also fell short of the S&P 500's 12% gain during that period.
Is there a buying opportunity in Essent Group, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free.
We're sitting this one out for now. Here are three reasons you should be careful with ESNT, plus one stock we'd rather own.
Insurers sell policies then use reinsurance (insurance for insurance companies) to protect themselves from large losses. Net premiums earned are therefore what's collected from selling policies less what's paid to reinsurers as a risk mitigation tool.
Essent Group's net premiums earned has grown at a 1.8% annualized rate over the last two years, much worse than the broader insurance industry and slower than its total revenue.
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.
Essent Group's unimpressive 8.2% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
Essent Group's business quality ultimately falls short of our standards. With its shares underperforming the market lately, the stock trades at 0.9× forward P/B (or $62.01 per share). This valuation is reasonable, but the company's shakier fundamentals present too much downside risk. We're fairly confident there are better investments elsewhere. We'd suggest looking at a top digital advertising platform riding the creator economy.
WHILE YOU'RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
