Arch Capital Group (ACGL) Stock Sinks As Market Gains: What You Should Know

Zacks
01-24

Arch Capital Group (ACGL) closed the most recent trading day at $93.02, moving -0.2% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.22%.

Prior to today's trading, shares of the property and casualty insurer had gained 0.58% over the past month. This has lagged the Finance sector's gain of 3.86% and the S&P 500's gain of 2.69% in that time.

Market participants will be closely following the financial results of Arch Capital Group in its upcoming release. The company plans to announce its earnings on February 10, 2025. In that report, analysts expect Arch Capital Group to post earnings of $1.85 per share. This would mark a year-over-year decline of 25.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.23 billion, up 15.22% from the year-ago period.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.42% lower within the past month. Right now, Arch Capital Group possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Arch Capital Group is currently trading at a Forward P/E ratio of 10.35. This indicates a discount in contrast to its industry's Forward P/E of 11.52.

Meanwhile, ACGL's PEG ratio is currently 1.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Property and Casualty was holding an average PEG ratio of 1.41 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ACGL in the coming trading sessions, be sure to utilize Zacks.com.

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