Arch Capital Group (ACGL) Surpasses Market Returns: Some Facts Worth Knowing

Zacks
26 Mar

The latest trading session saw Arch Capital Group (ACGL) ending at $94.58, denoting a +0.61% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.01%, and the technology-dominated Nasdaq saw an increase of 0.46%.

Shares of the property and casualty insurer witnessed a gain of 4.98% over the previous month, beating the performance of the Finance sector with its loss of 0.19% and the S&P 500's loss of 3.59%.

The upcoming earnings release of Arch Capital Group will be of great interest to investors. The company's earnings report is expected on April 29, 2025. It is anticipated that the company will report an EPS of $1.59, marking a 35.1% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.56 billion, up 21.05% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.16 per share and a revenue of $18.94 billion, indicating changes of -12.07% and +13.93%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arch Capital Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.86% lower within the past month. Arch Capital Group currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Arch Capital Group currently has a Forward P/E ratio of 11.52. This signifies a discount in comparison to the average Forward P/E of 11.93 for its industry.

One should further note that ACGL currently holds a PEG ratio of 4.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.67.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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