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Arch Capital Group (ACGL) Gains As Market Dips: What You Should Know

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Arch Capital Group (ACGL - Free Report) closed the most recent trading day at $113.41, moving +0.75% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.13% for the day. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.39%.

Heading into today, shares of the property and casualty insurer had lost 0.21% over the past month, lagging the Finance sector's gain of 1.5% and the S&P 500's gain of 2.43% in that time.

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 October 30, 2024. The company's upcoming EPS is projected at $1.70, signifying a 26.41% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.8 billion, up 8.23% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.01 per share and revenue of $15.56 billion, which would represent changes of +6.63% and +15.33%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, Arch Capital Group boasts a Zacks Rank of #2 (Buy).

From a valuation perspective, Arch Capital Group is currently exchanging hands at a Forward P/E ratio of 12.49. This indicates a discount in contrast to its industry's Forward P/E of 13.71.

Meanwhile, ACGL's PEG ratio is currently 2.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Insurance - Property and Casualty industry stood at 1.5 at the close of the market yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 19, positioning it in the top 8% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ACGL in the coming trading sessions, be sure to utilize Zacks.com.


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