"If you missed the home builder stock run of 2012, we believe Radian is the next name with about 100 percent upside from current levels as purchase demand and home prices continue to improve at a modest clip," Micenko wrote in a research note.
Radian is one of the few mortgage insurers that has survived the downturn and has grown into the largest, Micenko told CNBC's "Squawk on the Street."
The company will also benefit from rising interest rates as the mortgage market shifts from refinancing to home purchases, which is a higher margin business. On a new home, purchasing mortgage insurance is a recurring, monthly payment. In contrast, refinancing often is a one-off payment, Micenko explained.
"As the housing market improves and purchase demand recovers, we think there's opportunity to move into a higher ROE (return on equity) mix of business," he said.
Radian will also benefit as home prices start to climb. "The builders are now facing labor constraints and higher pricing on materials," Micenko told CNBC. "Price improvement for Radian drops straight to the bottom line, so we think that's a better play on (home) price appreciation as well."
—By CNBC's Justin Menza