Arch Capital Group (ACGL) Stock Moves -0.09%: What You Should Know

Zacks
04-17

Arch Capital Group (ACGL) closed the latest trading day at $92.38, indicating a -0.09% change from the previous session's end. This change was narrower than the S&P 500's 2.24% loss on the day. Elsewhere, the Dow saw a downswing of 1.73%, while the tech-heavy Nasdaq depreciated by 3.07%.

The the stock of property and casualty insurer has fallen by 0.9% in the past month, leading the Finance sector's loss of 3.21% and the S&P 500's loss of 4.17%.

The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company is scheduled to release its earnings on April 29, 2025. The company is forecasted to report an EPS of $1.34, showcasing a 45.31% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.55 billion, up 20.79% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.81 per share and revenue of $18.96 billion, indicating changes of -15.84% and +14.07%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.27% lower. At present, Arch Capital Group boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Arch Capital Group is at present trading with a Forward P/E ratio of 11.83. This signifies a premium in comparison to the average Forward P/E of 11.71 for its industry.

It's also important to note that ACGL currently trades at a PEG ratio of 4.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 2.03 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 15% of over 250 industries.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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