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Why Arch Capital Group (ACGL) Outpaced the Stock Market Today
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Arch Capital Group (ACGL - Free Report) closed the most recent trading day at $100.80, moving +1.6% from the previous trading session. This change outpaced the S&P 500's 0.25% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.03%.
Heading into today, shares of the property and casualty insurer had lost 0.96% over the past month, outpacing the Finance sector's loss of 2.3% and lagging the S&P 500's gain of 3.34% in that time.
The upcoming earnings release of Arch Capital Group will be of great interest to investors. It is anticipated that the company will report an EPS of $2.16, marking a 12.5% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.9 billion, reflecting a 21.62% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.55 per share and a revenue of $16 billion, representing changes of +1.18% and +18.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arch Capital Group. These revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Arch Capital Group currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Arch Capital Group is currently trading at a Forward P/E ratio of 11.6. Its industry sports an average Forward P/E of 12.3, so one might conclude that Arch Capital Group is trading at a discount comparatively.
Meanwhile, ACGL's PEG ratio is currently 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.49.
The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why Arch Capital Group (ACGL) Outpaced the Stock Market Today
Arch Capital Group (ACGL - Free Report) closed the most recent trading day at $100.80, moving +1.6% from the previous trading session. This change outpaced the S&P 500's 0.25% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.03%.
Heading into today, shares of the property and casualty insurer had lost 0.96% over the past month, outpacing the Finance sector's loss of 2.3% and lagging the S&P 500's gain of 3.34% in that time.
The upcoming earnings release of Arch Capital Group will be of great interest to investors. It is anticipated that the company will report an EPS of $2.16, marking a 12.5% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.9 billion, reflecting a 21.62% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.55 per share and a revenue of $16 billion, representing changes of +1.18% and +18.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arch Capital Group. These revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Arch Capital Group currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Arch Capital Group is currently trading at a Forward P/E ratio of 11.6. Its industry sports an average Forward P/E of 12.3, so one might conclude that Arch Capital Group is trading at a discount comparatively.
Meanwhile, ACGL's PEG ratio is currently 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.49.
The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.