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

Arch Capital Group (ACGL) closed at $99.58 in the latest trading session, marking a -0.99% move from the prior day. This change lagged the S&P 500's daily gain of 0.27%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.88%.

The the stock of property and casualty insurer has risen by 2.73% in the past month, leading the Finance sector's loss of 0.29% and undershooting the S&P 500's gain of 2.85%.

The upcoming earnings release of Arch Capital Group will be of great interest to investors. The company is expected to report EPS of $2.16, up 12.5% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.91 billion, indicating a 21.96% growth compared to the corresponding quarter of the prior 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.

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Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 1.51% upward. Right now, Arch Capital Group possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Arch Capital Group is presently being traded at a Forward P/E ratio of 11.76. This valuation marks a discount compared to its industry's average Forward P/E of 12.61.

Also, we should mention that ACGL has a PEG ratio of 1.72. 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. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.53.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report

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Zacks Investment Research