Arch Capital Group (ACGL) Stock Moves -0.56%: What You Should Know

Zacks
04 Apr

In the latest market close, Arch Capital Group (ACGL) reached $96.28, with a -0.56% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 4.84%. Elsewhere, the Dow saw a downswing of 3.98%, while the tech-heavy Nasdaq depreciated by 5.97%.

Shares of the property and casualty insurer witnessed a gain of 5.99% over the previous month, beating the performance of the Finance sector with its loss of 2.42% and the S&P 500's loss of 4.7%.

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 April 29, 2025. The company's upcoming EPS is projected at $1.43, signifying a 41.63% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.55 billion, indicating a 20.82% increase compared to the same quarter of the previous year.

ACGL's full-year Zacks Consensus Estimates are calling for earnings of $7.92 per share and revenue of $18.9 billion. These results would represent year-over-year changes of -14.66% and +13.68%, respectively.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.62% lower. Currently, Arch Capital Group is carrying a Zacks Rank of #4 (Sell).

In the context of valuation, Arch Capital Group is at present trading with a Forward P/E ratio of 12.23. For comparison, its industry has an average Forward P/E of 12.23, which means Arch Capital Group is trading at no noticeable deviation to the group.

We can also see that ACGL currently has a PEG ratio of 4.28. 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. The Insurance - Property and Casualty industry had an average PEG ratio of 2.01 as trading concluded yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 40, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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