Is ACT a good stock to buy right now?

Based on our 6-factor quantitative model, Enact Holdings, Inc. (ACT) receives a "Buy" rating with a composite score of 61.6/100. It is ranked #3 out of 4,446 stocks. Key factor scores: Quality 81/100, Value 76/100, Momentum 52/100. The timing signal is "Bullish". This is quantitative analysis only — not investment advice.

What is the stock rating for ACT?

Enact Holdings, Inc. (ACT) has a "Buy" rating and 4-star score. The composite score of 61.6 ranks it #3 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is ACT in?

Enact Holdings, Inc. operates in the Financials sector (Insurance industry) with a market cap of $5.73 billion. It is classified as a mid-cap stock.

Does ACT pay a dividend?

Yes, ACT pays a dividend with a current yield of 2.54%. The Financials sector average yield is 2.48%. For every $1,000 invested, you would receive approximately $25.40 in annual dividend income.

What is ACT's P/E ratio?

ACT has a trailing P/E ratio of 8.70x. The Financials sector average is 14.9x. This below-average P/E may indicate the stock is undervalued.

How profitable is ACT?

ACT's quality factor score is 81/100. Gross margin: 88.5%. ROE: 12.7% vs sector average 8.5%. High margins suggest pricing power and competitive moats.

How is ACT valued compared to peers?

ACT's value factor score is 76/100 (higher = cheaper). Key multiples: P/E 8.7x, EV/EBITDA 7.7x. The stock appears attractively valued versus peers.

What is ACT's debt level?

ACT's debt-to-equity ratio is 14%. Sector average: 121%. Low leverage suggests conservative financial management.

ACT has a beta of 0.47, meaning it is less volatile than the market. Stability score: 92/100.

Does ACT have high short interest?

ACT's short interest factor score is 4/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

ACT Stock Analysis: Top Mid-Cap Buy (Score 61.6/100) | Blank Capital Research

Pro Equity Research

ACT: A Dominant Force in Private Mortgage Insurance

Blank Capital Research Team

•March 26, 2026

Executive Summary

Enact Holdings, Inc. (ACT) is a leading private mortgage insurance (PMI) provider. Spun off from Genworth, ACT is now a pure-play, high-dividend-paying engine that benefits from the structural need for low-down-payment home loans.

Investment Thesis

ACT is a cash flow powerhouse. As a leading player in the PMI industry, Enact provides a critical service that allows home buyers to purchase property with less than 20% down. Their business model is highly resilient, as the 'Insurance in Force' (IIF) generates steady, recurring premium income regardless of near-term home sales volatility. The company's conservative underwriting and pristine balance sheet have resulted in very low loss ratios. Management is committed to returning nearly all excess capital to shareholders via dividends and buybacks, offering a massive shareholder yield.

Key Growth Drivers

Expanding Insurance in Force

The steady accumulation of high-quality mortgage insurance policies provides a reliable, long-term stream of high-margin premium revenue.

Low Loss Experience

Strong employment and home price appreciation in recent years have kept mortgage defaults at historic lows, allowing ACT to print record underwriting profits.

Aggressive Capital Return

As a mature, capital-rich business, ACT returns almost all of its free cash flow to shareholders, providing a defensive, income-oriented investment profile.

Valuation & Financial Modeling

ACT trades at an undemanding multiple of earnings and a discount to its peers. Given its high return on equity (ROE) and significant dividend yield, we view the stock as deeply undervalued relative to its cash-generating power.

Risk Factors & Bear Case

A severe housing market crash or a spike in unemployment would trigger a wave of mortgage defaults, forcing ACT to pay out massive claims. Furthermore, regulatory changes affecting the FHA or GSEs (Fannie/Freddie) could reduce the overall demand for private mortgage insurance.

Conclusion

Enact Holdings is a premier income vehicle for investors seeking exposure to the U.S. housing market without direct real estate risk. Rated 'Strong Buy' for income portfolios.

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
ACT	-1.85%	+1.40%	+2.02%	+5.78%	+20.35%	-	-	-
Industry Proxy XLF	-1.09%	+2.50%	+1.42%	-7.30%	+10.59%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	-1.78%	-2.20%	+1.68%	+6.14%	-9.17%	-	-	-
Alpha vs Sector	-0.76%	-1.10%	+0.60%	+13.08%	+9.76%	-	-	-

Metric	ACT	Benchmark
P/E Ratio	8.7x	-42%
EV/EBITDA	7.7x	+136%
Price / Book	1.1x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
WTM WHITE MOUNTAINS INSURANCE GROUP LTD	63	80	79	54	8.9x	10.1%	96.3%	20.1%	1.6%	14.0x	$5.4B	VS
OPY OPPENHEIMER HOLDINGS INC	63	68	79	63	10.4x	9.9%	0.0%	6.5%	37.5%	273.0x	$959M	VS
ACT Enact Holdings, Inc.	62	81	76	52	8.7x	12.7%	88.5%	55.0%	4.2%	14.0x	$5.7B
IGIC International General Insurance Holdings Ltd.	61	74	93	50	8.6x	82.6%	59.9%	25.1%	-	0.0x	$1.1B	VS
PKBK PARKE BANCORP, INC.	60	60	77	65	9.8x	10.5%	-	24.8%	20.9%	593.0x	$335M	VS
SSSS SURO CAPITAL CORP.	60	89	33	65	4.7x	30.9%	0.0%	-752.0%	-48.3%	34.0x	$290M	VS
CB Chubb Ltd	59	67	71	52	12.8x	12.5%	0.0%	16.6%	15.6%	20.0x	$128.0B	VS
RRBI RED RIVER BANCSHARES INC	59	59	69	68	15.0x	11.0%	0.0%	27.5%	13.3%	818.0x	$607M	VS
UFCS UNITED FIRE GROUP INC	59	64	78	58	9.8x	10.6%	100.0%	7.3%	17.5%	308.0x	$936M	VS
SPFI SOUTH PLAINS FINANCIAL, INC.	58	59	73	55	12.8x	11.0%	0.0%	21.7%	9.0%	807.0x	$690M	VS
CCBG CAPITAL CITY BANK GROUP INC	56	59	73	50	12.9x	10.9%	0.0%	29.9%	5.5%	693.0x	$752M	VS

Key Ratio	TTM	2025	2024	2023	2022	2021	2020
Gross Margin %	-	-	-	-	-	-	0.7%
Operating Margin %	0.7%	0.7%	0.7%	0.7%	0.8%	0.6%	0.4%
EBITDA Margin %	0.7%	0.7%	0.7%	0.7%	0.8%	0.6%	0.5%
Net Margin %	0.5%	0.5%	0.6%	0.6%	0.6%	0.5%	0.3%
FCF Margin %	-	-	-	-	-	-	114.3%
ROE %	0.1%	0.1%	0.1%	0.1%	0.2%	0.1%	0.1%
ROA %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
ROIC %	0.1%	11.1%	12.1%	12.5%	14.6%	11.3%	9.3%

Line Item	TTM	2025	2024	2023	2022	2021	2020
	$1.2B	$1.2B	$1.2B	$1.2B	$1.1B	$1.1B	$1.1B
	—	—	—	—	—	—	$727M
Gross Margin	---	---	---	---	---	---	65.7%
	—	$208M	$213M	$212M	$227M	—	—
Depreciation	—	—	—	—	—	—	$16M
Total Operating Expenses	—	$377M	$324M	$302M	$197M	$423M	—
	$865M	$859M	$878M	$852M	$898M	$695M	$491M
EBIT	$865M	$859M	$878M	$852M	$898M	$695M	$491M
EBITDA	$865M	$859M	$878M	$852M	$898M	$695M	$506M
Operating Margin	70.2%	69.5%	73.1%	73.8%	82.0%	62.2%	44.4%
EBITDA Margin	70.2%	69.5%	73.1%	73.8%	82.0%	62.2%	45.8%
	—	$50M	$51M	$52M	$52M	$51M	$18M
	—	$859M	$878M	$852M	$898M	$695M	—
Income Tax Expense	—	$185M	$190M	$186M	$194M	$149M	$102M
	$678M	$674M	$688M	$666M	$704M	$547M	$370M
Net Margin	55.0%	54.6%	57.3%	57.7%	64.3%	48.9%	33.5%
	$4.54	$4.54	$4.40	$4.14	$4.32	$3.36	$2.27
Diluted EPS	$4.54	$4.52	$4.37	$4.11	$4.31	$3.36	$2.27
Weighted Avg Basic	—	148M	156M	161M	163M	163M	—
Weighted Avg Diluted	—	149M	158M	162M	163M	163M	—

Enact Holdings, Inc. (ACT) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does Enact Holdings, Inc. Do?

Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company is involved in writing and assuming residential mortgage guaranty insurance. It offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and contract underwriting services for mortgage lenders. The company was formerly known as Genworth Mortgage Holdings, Inc. and changed its name to Enact Holdings, Inc. in May 2021. Enact Holdings, Inc. was founded in 1981 and is headquartered in Raleigh, North Carolina. Enact Holdings, Inc. is a subsidiary of Genworth Holdings, Inc. Enact Holdings, Inc. (ACT) is classified as a mid-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Rohit Gupta and employs approximately 500 people. With a market capitalization of $5.7B, ACT is one of the notable companies in the Financials sector.

Enact Holdings, Inc. (ACT) Stock Rating — Buy (April 2026)

As of April 2026, Enact Holdings, Inc. receives a Buy rating with a composite score of 61.6/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.ACT ranks #3 out of 4,446 stocks in our coverage universe. Within the Financials sector, Enact Holdings, Inc. ranks #3 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

ACT Stock Price and 52-Week Range

Enact Holdings, Inc. (ACT) currently trades at $41.93. The stock lost $0.79 (1.8%) in the most recent trading session. The 52-week high for ACT is $44.80, which means the stock is currently trading -6.4% from its annual peak. The 52-week low is $31.28, putting the stock 34.0% above its annual trough. Recent trading volume was 356K shares, suggesting relatively thin trading activity.

Is ACT Overvalued or Undervalued? — Valuation Analysis

Enact Holdings, Inc. (ACT) carries a value factor score of 76/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.70x, compared to the Financials sector average of 14.88x — a discount of 42%. The price-to-book ratio stands at 1.10x, versus the sector average of 1.22x. The price-to-sales ratio is 4.79x, compared to 0.90x for the average Financials stock. On an enterprise value basis, ACT trades at 7.68x EV/EBITDA, versus 3.26x for the sector.

Based on these multiples, Enact Holdings, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.

Enact Holdings, Inc. Profitability — ROE, Margins, and Quality Score

Enact Holdings, Inc. (ACT) earns a quality factor score of 81/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 12.7%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 9.8% versus the sector average of 1.2%.

On a margin basis, Enact Holdings, Inc. reports gross margins of 88.5%. The operating margin is 70.2% (sector: 21.8%). Net profit margin stands at 55.0%, versus 17.7% for the average Financials stock. Revenue growth is running at 4.2% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.

ACT Debt, Balance Sheet, and Financial Health

Enact Holdings, Inc. has a debt-to-equity ratio of 14.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.48x, indicating strong short-term liquidity. Total debt on the balance sheet is $744M. Cash and equivalents stand at $544M.

ACT has a beta of 0.47, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Enact Holdings, Inc. is 92/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

Enact Holdings, Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Enact Holdings, Inc. reported revenue of $1.23B and earnings per share (EPS) of $4.54. Net income for the quarter was $678M. Operating income came in at $865M.

In FY 2025, Enact Holdings, Inc. reported revenue of $1.24B and earnings per share (EPS) of $4.54. Net income for the quarter was $674M. Revenue grew 2.8% year-over-year compared to FY 2024. Operating income came in at $859M.

In Q3 2025, Enact Holdings, Inc. reported revenue of $311M and earnings per share (EPS) of $1.11. Net income for the quarter was $163M. Revenue grew 0.6% year-over-year compared to Q3 2024. Operating income came in at $210M.

In Q2 2025, Enact Holdings, Inc. reported revenue of $305M and earnings per share (EPS) of $1.12. Net income for the quarter was $168M. Revenue grew 2.0% year-over-year compared to Q2 2024. Operating income came in at $215M.

Over the past 8 quarters, Enact Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $299M to $1.23B. Investors analyzing ACT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

ACT Dividend Yield and Income Analysis

Enact Holdings, Inc. (ACT) currently pays a dividend yield of 2.5%. At this yield, a $10,000 investment in ACT stock would generate approximately $$254.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning ACT offers above-average income for its sector. With a net margin of 55.0%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.

ACT Momentum and Technical Analysis Profile

Enact Holdings, Inc. (ACT) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 4/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

ACT vs Competitors — Financials Sector Ranking and Peer Comparison

Within the Financials sector, Enact Holdings, Inc. (ACT) ranks #3 out of 891 stocks based on the Blank Capital composite score. This places ACT in the top decile of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, PARKE BANCORP, INC. (PKBK) with a score of 60.4/100, and SURO CAPITAL CORP. (SSSS) with a score of 60.2/100.

Comparing ACT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ACT vs S&P 500 (SPY) comparison to assess how Enact Holdings, Inc. stacks up against the broader market across all factor dimensions.

ACT Next Earnings Date

No upcoming earnings date has been announced for Enact Holdings, Inc. (ACT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy ACT? — Investment Thesis Summary

The bull case for Enact Holdings, Inc. rests on several quantitative strengths. The quality score of 81/100 indicates above-average profitability and business fundamentals. The value score of 76/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 92/100) reduces downside risk.

In summary, Enact Holdings, Inc. (ACT) earns a Buy rating with a composite score of 61.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ACT stock.

Related Resources for ACT Investors

Explore more research and tools: ACT vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare ACT head-to-head with peers: ACT vs WTM, ACT vs OPY, ACT vs IGIC.

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Enact Holdings, Inc. (ACT) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does Enact Holdings, Inc. Do?

Enact Holdings, Inc. (ACT) Stock Rating — Buy (April 2026)

ACT Stock Price and 52-Week Range

Is ACT Overvalued or Undervalued? — Valuation Analysis

Enact Holdings, Inc. Profitability — ROE, Margins, and Quality Score

ACT Debt, Balance Sheet, and Financial Health

Enact Holdings, Inc. Revenue and Earnings History — Quarterly Trend

ACT Dividend Yield and Income Analysis

ACT Momentum and Technical Analysis Profile

ACT vs Competitors — Financials Sector Ranking and Peer Comparison

ACT Next Earnings Date

Should You Buy ACT? — Investment Thesis Summary

Related Resources for ACT Investors

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