The most recent trading session ended with Arch Capital Group (ACGL) standing at $93.19, reflecting a -0.12% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.
The property and casualty insurer's stock has climbed by 5.63% in the past month, exceeding the Finance sector's loss of 4.3% and the S&P 500's loss of 8.26%.
Analysts and investors alike will be keeping a close eye on the performance of Arch Capital Group in its upcoming earnings disclosure. The company's earnings report is set to go public on April 29, 2025. The company's upcoming EPS is projected at $1.68, signifying a 31.43% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.56 billion, indicating a 21.05% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.27 per share and a revenue of $18.94 billion, indicating changes of -10.88% and +13.93%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Arch Capital Group. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.18% decrease. Right now, Arch Capital Group possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Arch Capital Group is presently trading at a Forward P/E ratio of 11.29. This indicates a discount in contrast to its industry's Forward P/E of 11.76.
Meanwhile, ACGL's PEG ratio is currently 3.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.71.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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