Back to top

Image: Bigstock

Arch Capital Group (ACGL) Ascends While Market Falls: Some Facts to Note

Read MoreHide Full Article

The latest trading session saw Arch Capital Group (ACGL - Free Report) ending at $88.99, denoting a +0.32% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.

Heading into today, shares of the property and casualty insurer had lost 7.31% over the past month, lagging the Finance sector's loss of 4.24% and the S&P 500's loss of 0.29% 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 is forecasted to report an EPS of $2.03, showcasing a 18.47% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.23 billion, indicating a 15.25% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.99 per share and a revenue of $16.16 billion, signifying shifts of +6.39% and +19.76%, respectively, from the last year.

Investors should also note any 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 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 0.24% lower. Arch Capital Group presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Arch Capital Group is presently being traded at a Forward P/E ratio of 9.86. This signifies a discount in comparison to the average Forward P/E of 13.13 for its industry.

It's also important to note that ACGL currently trades at a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ACGL's industry had an average PEG ratio of 1.3 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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