RICHMOND, Va. (

TheStreet

) --

Genworth Financial's

(GNW) - Get Report

stock sale this week has created a buying opportunity for investors willing to take a chance on a volatile stock from a downtrodden industry.

On Tuesday, Genworth said it raised $564 million by issuing 48 million shares for $11.75 each. The sale diluted the value of the company's shares outstanding by 10%, but it made an already cheap stock even more appealing. The shares are trading for 57% of book value, compared to 104% for the industry.

With positive third-quarter predictions from

Ameriprise Financial

(AMP) - Get Report

and

MetLife

(MET) - Get Report

at an industry conference yesterday, it appears the mood for insurers is changing. Genworth could break even this year, according to analyst estimates. If the markets improve, we could see a significant swing for this stock.

There's almost no short interest in Genworth, which reflects investors' confidence that the shares will rise. The stock has more than doubled in the past three months, but it's down 15% from a year ago, when the markets began to spiral. Genworth shares have been highly volatile with a beta of 2.78.

In June, rival

Lincoln National

(LNC) - Get Report

raised $690 million by issuing shares for $15 each. The shares have since climbed to $27. Lincoln stock has a price-to-book value of 90%, and is still a good opportunity.

Analysts, on average, rate Genworth shares "hold," according to

SNL Financial

. Our model rates the stock a more conservative "sell," but for the adventurous, it's a big buy.

Lead managers for the Genworth issue are

Bank of America

(BAC) - Get Report

,

Deutsche Bank

(DB) - Get Report

and

Goldman Sachs

(GS) - Get Report

. They have an option to buy another 7.2 million shares.

Reported by Gavin Magor in Jupiter, Fla.

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Gavin Magor joined TheStreet.com Ratings in 2008, and is the senior analyst responsible for assigning financial strength ratings to health insurers and supporting other health care-related consumer products, including Medicare supplement insurance, long-term care insurance and elder care information. He conducts industry analysis in these areas. He has more than 20 years' international experience in credit risk management, commercial lending and analysis, working in the U.K., Sweden, Mexico, Brazil and the U.S. He holds a master's degree in business administration from The Open University in the U.K.