Back to top

Image: Bigstock

Arch Capital Group (ACGL) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

In the latest trading session, Arch Capital Group (ACGL - Free Report) closed at $96.40, marking a +0.18% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.32%. Elsewhere, the Dow lost 1.25%, while the tech-heavy Nasdaq lost 3.64%.

Coming into today, shares of the property and casualty insurer had lost 5.8% in the past month. In that same time, the Finance sector lost 1.37%, while the S&P 500 gained 1.79%.

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 July 30, 2024. It is anticipated that the company will report an EPS of $2.17, marking a 13.02% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.9 billion, up 21.54% from the year-ago period.

ACGL's full-year Zacks Consensus Estimates are calling for earnings of $8.59 per share and revenue of $16.06 billion. These results would represent year-over-year changes of +1.66% and +19.06%, respectively.

It is also important to note the recent changes to analyst estimates for Arch Capital Group. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% upward. Arch Capital Group currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 11.21. For comparison, its industry has an average Forward P/E of 12.65, which means Arch Capital Group is trading at a discount to the group.

One should further note that ACGL currently holds a PEG ratio of 1.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty was holding an average PEG ratio of 1.6 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 97, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Arch Capital Group Ltd. (ACGL) - free report >>

Published in