Arch Capital Group (ACGL) Increases Despite Market Slip: Here's What You Need to Know

Zacks
2024-12-27

In the latest trading session, Arch Capital Group (ACGL) closed at $92.93, marking a +0.28% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 0.05%.

The property and casualty insurer's stock has dropped by 8.01% in the past month, falling short of the Finance sector's loss of 4.16% and the S&P 500's gain of 1.05%.

The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company is expected to report EPS of $1.96, down 21.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.23 billion, up 15.2% from the year-ago period.

ACGL's full-year Zacks Consensus Estimates are calling for earnings of $8.93 per share and revenue of $16.15 billion. These results would represent year-over-year changes of +5.68% and +19.75%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.72% decrease. At present, Arch Capital Group boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Arch Capital Group is currently trading at a Forward P/E ratio of 10.38. This expresses a discount compared to the average Forward P/E of 13.59 of its industry.

It is also worth noting that ACGL currently has a PEG ratio of 1.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty industry had an average PEG ratio of 1.48 as trading concluded yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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