Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Essent Group ( ESNT) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Essent Group as such a stock due to the following factors:

  • ESNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.1 million.
  • ESNT has traded 132,787 shares today.
  • ESNT is up 3.1% today.
  • ESNT was down 8.1% yesterday.

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More details on ESNT:

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. ESNT has a PE ratio of 23. Currently there are 4 analysts that rate Essent Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Essent Group has been 584,200 shares per day over the past 30 days. Essent Group has a market cap of $2.7 billion and is part of the financial sector and real estate industry. Shares are up 3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Essent Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • ESNT's very impressive revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues leaped by 67.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 111.11% and other important driving factors, this stock has surged by 58.67% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although ESNT had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • Net operating cash flow has significantly increased by 276.59% to $47.18 million when compared to the same quarter last year. In addition, ESSENT GROUP LTD has also vastly surpassed the industry average cash flow growth rate of 113.70%.
  • When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, ESSENT GROUP LTD's return on equity is below that of both the industry average and the S&P 500.

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