Radian Group has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 12.6% to $36.87 per share while the index has gained 13.1%.

Is now the time to buy Radian Group, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free.

Why Is Radian Group Not Exciting?

We’re cautious about Radian Group. Here are three reasons you should be careful with RDN, plus one stock we’d rather own.

1. Net Premiums Earned Point to Soft Demand

When insurers sell policies, they protect themselves from extremely large losses or an outsized accumulation of losses with reinsurance (insurance for insurance companies). Net premiums earned are:

• Gross premiums - what’s ceded to reinsurers as a risk mitigation and transfer strategy

Radian Group’s net premiums earned has grown at a 4.4% annualized rate over the last five years, worse than the broader insurance industry and in line with its total revenue.

2. Recent EPS Growth Below Our Standards

Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.

Radian Group’s EPS grew at a weak 6.6% compounded annual growth rate over the last two years, lower than its 10.4% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.

Final Judgment

Radian Group’s business quality ultimately falls short of our standards. That said, the stock currently trades at 1× forward P/B (or $36.87 per share). While this valuation is reasonable, we don’t really see a big opportunity at the moment. We’re pretty confident there are more exciting stocks to buy at the moment. We’d suggest looking at one of our all-time favorite software stocks.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.