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Why Arch Capital Group (ACGL) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Arch Capital Group (ACGL)

Established in 1995 and headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. offers insurance, reinsurance and mortgage insurance across the world. Through its wholly owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity,  workers compensation and umbrella liability and employers  liability insurance coverages to name a few. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines, while maintaining focus on writing specialty lines of insurance and reinsurance.

ACGL is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 10.3X for the current fiscal year compared to the Insurance - Property and Casualty industry's P/E of 12.6X. Additionally, ACGL has a PEG Ratio of 1 and a Price/Cash Flow ratio of 11.7X. Value investors should also note ACGL's Price/Sales ratio of 2.5X.

Many value investors pay close attention to a company's earnings as well. For ACGL, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.53 to $6.11 per share for 2023. Per share ACGL boasts an average earnings surprise of 24.2%.

Investors should take the time to consider ACGL for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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

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Zacks Investment Research