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Is Arch Capital Group (ACGL) Stock Outpacing Its Finance Peers This Year?

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Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Arch Capital Group (ACGL - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.

Arch Capital Group is a member of our Finance group, which includes 860 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Arch Capital Group is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ACGL's full-year earnings has moved 5.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ACGL has returned about 30.1% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of 7.6% on a year-to-date basis. This shows that Arch Capital Group is outperforming its peers so far this year.

Enact Holdings, Inc. (ACT - Free Report) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.4%.

Over the past three months, Enact Holdings, Inc.'s consensus EPS estimate for the current year has increased 6.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Arch Capital Group belongs to the Insurance - Property and Casualty industry, a group that includes 40 individual stocks and currently sits at #97 in the Zacks Industry Rank. This group has gained an average of 17% so far this year, so ACGL is performing better in this area.

In contrast, Enact Holdings, Inc. falls under the Insurance - Multi line industry. Currently, this industry has 39 stocks and is ranked #54. Since the beginning of the year, the industry has moved +4.3%.

Arch Capital Group and Enact Holdings, Inc. could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.


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