MGIC Stock Analysis: Buy, Sell, or Hold?
MGIC - Magic Software Enterprises Ltd
$17.38
-2.02 (-10.41%)
âŧ
5d:
-8.04%
30d:
-34.78%
90d:
-23.23%
WAIT
LOW Confidence
Analysis Updated: Feb 23, 2026 12:00 AM ET
Earnings: May 13, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: MGIC is fairly priced but lacks strong directional signals. At -10.9% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: MGIC is fairly priced but lacks strong directional signals. At -10.9% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$34.06
Based on 6.8% avg growth
INTRINSIC VALUE TODAY
$21.15
17.8% Margin of Safety
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 21.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: MGIC is currently trading at $17.38, which is considered fair based on recent price action. From a valuation perspective, the stock is trading at a discount (Forward PE: 15.4) compared to its historical average (21.8). Remarkably, the market is currently pricing in an annual earnings decline of 10.9% over the next few years. This pessimistic expectation contrasts with the company's recent 17.6% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, MGIC is in a uptrend. The price is currently testing key support at $17.06. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 10.4% recently.
Market Sentiment: MGIC has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, MGIC is in a uptrend. The price is currently testing key support at $17.06. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 10.4% recently.
Market Sentiment: MGIC has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
FAIR
Company Quality Score
54/100
(HOLD)
Volume Confirmation
UNKNOWN
Confidence Score
35.7%
All Signals
- NEUTRAL: Price in fair range
- BEARISH: Weak technical setup (25/100)
- BEARISH: Downward momentum (-10.4%)
- NEUTRAL: Near Wall St target ($18.00)
Support & Resistance Levels
Support Level
$17.06
Resistance Level
$23.40
Current Trend
Uptrend
Technical data as of
Feb 23, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.41
Wall Street Target
$18.00
(+3.6%)
Revenue Growth (YoY)
13.1%
Earnings Growth (YoY)
17.6%
Profit Margin
6.6%
Valuation Discount vs History
-10.9% cheaper
PE vs Historical
15.4 vs 21.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-10.9%
(market-implied from PE analysis)
1-Year Target
$15.64
(-10%)
2-Year Target
$14.08
(-19%)
3-Year Target
$12.67
(-27%)
3-Yr Target (if PE normalizes)
(PE: 15â22)
$17.93
(+3%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.6, Growth: 9.5%)
$33.38
(+92%)
Base:
(SPY PE: 15.4, Growth: 9.5%)
$22.79
(+31%)
Bear:
(PE: 13.1, Growth: 9.5%)
$19.38
(+12%)
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 15.4 to 21.8
Stabilization Target:
$24.59
(+41.5%)
PE Expansion Potential:
+41.5%
Share & Embed Analysis
Last updated: May 18, 2026 5:02 PM ET
Data refreshes hourly during market hours. Next update: 6:01 PM
Data refreshes hourly during market hours. Next update: 6:01 PM
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Technical Signals Check
Is MGIC showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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