ACT Stock Analysis: Buy, Sell, or Hold?
ACT - Enact Holdings, Inc. Common Stock
$40.79
0.62 (1.54%)
▲
5d:
+1.09%
30d:
-2.51%
90d:
+1.75%
HOLD
MODERATE Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: Apr 29, 2026
28d
Smart Money Accumulation
ACT is down 3.4% this week, but smart money is accumulating calls. Top strike: $45 2026-04-17 with 252 OI. Call ratio: 100% View Scanner →
Strength: 6.7/10
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ACT shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: ACT shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$54.27
Based on 5.1% avg growth
INTRINSIC VALUE TODAY
$33.70
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 8.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ACT is currently trading at $40.79, which is considered fair relative to its 30-day fair value range of $40.39 to $41.86. The stock's valuation (Forward PE: 8.1) is in line with its historical norms (8.4). Remarkably, the market is currently pricing in an annual earnings decline of 1.1% over the next few years. This pessimistic expectation contrasts with the company's recent 15.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, ACT is in a uptrend. The price is currently testing key support at $39.80. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ACT has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. In the options market, Implied Volatility is low (1th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $45.60 (+11.8%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, ACT is in a uptrend. The price is currently testing key support at $39.80. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ACT has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. In the options market, Implied Volatility is low (1th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $45.60 (+11.8%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$40.39 -
$41.86
Company Quality Score
56/100
(HOLD)
Options IV Signal
1th percentile
(LOW)
Volume Confirmation
HIGH
Confidence Score
57.7%
Protect Your Profits
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View Profit Protection PlanAll Signals
- NEUTRAL: Price in fair range
- BULLISH: Options cheap (IV 1th percentile)
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($45.60)
Fair Price Analysis
30-Day Fair Range
$40.39 -
$41.86
Current vs Fair Value
FAIR
Expected Move (7 Days)
±$3.40
(8.3%)
Support & Resistance Levels
Support Level
$39.81
Resistance Level
$41.50
Current Trend
Uptrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
8.08
Wall Street Target
$45.60
(+11.8%)
Revenue Growth (YoY)
3.6%
Earnings Growth (YoY)
15.5%
Profit Margin
54.6%
Valuation Discount vs History
-1.1% cheaper
PE vs Historical
8.1 vs 8.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.1%
(market-implied from PE analysis)
1-Year Target
$40.34
(-1%)
2-Year Target
$39.90
(-2%)
3-Year Target
$39.46
(-3%)
3-Yr Target (if PE normalizes)
(PE: 8→8)
$41.04
(+1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 6.1%)
$134.96
(+231%)
Base:
(SPY PE: 8.1, Growth: 6.1%)
$48.77
(+20%)
Bear:
(PE: 6.9, Growth: 6.1%)
$41.45
(+2%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (9x PE), but valuation improves significantly next year (8x PE) as earnings recover.
Trailing PE: 8.90 | Current EPS (TTM): $4.52
Bull Case
$49.43
(+23%)
Analyst growth 11.7%, PE expands to 9.8
Base Case
$44.93
(+11%)
Market implied 11.7%, PE stable at 8.9
Bear Case
$27.34
(-32%)
Severe decline -20.0%, PE contracts to 7.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 8.1 to 8.4
Stabilization Target:
$42.43
(+4.0%)
PE Expansion Potential:
+4.0%
Share & Embed Analysis
Last updated: March 31, 2026 6:42 AM ET
Data refreshes hourly during market hours. Next update: 7:42 AM
Data refreshes hourly during market hours. Next update: 7:42 AM
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Technical Signals Check
Is ACT showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced ACT Option Strategies
Professional options setups generated by AI based on today's ACT price and gamma walls.
