MGIC Takes Ratings Hits

MGIC Investment Corp., Milwaukee, has taken a pair of hits to its ratings from two different sources.Zacks.com, the Chicago-based online arm of Zacks Investment Research Inc., gave MGIC a "#4 Sell" ranking, which means Zacks thinks the stock should be sold or avoided for the next one to three months. MGIC's earnings estimates for this year and next "have moved lower by about 2% and 4%, respectively, from levels three months ago," Zacks said. "Analysts have also kept their distance from other companies in MGIC Investment's industry, including PMI Group." Meanwhile, Standard & Poor's Ratings Services has revised its outlook on MGIC to negative. Charles Titterton, an analyst for S&P, explained that the negative outlook "reflects the possibly temporarily less robust earnings picture of the organization relative to [those of] its competitors. More specifically, higher losses and continued industrywide declining profitability in the flow market could further affect earnings."