In This Article:
Arch Capital Group (ACGL) closed at $91.38 in the latest trading session, marking a -1.05% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
The the stock of property and casualty insurer has fallen by 6.22% in the past month, lagging the Finance sector's loss of 5.69% and the S&P 500's loss of 2.36%.
The upcoming earnings release of Arch Capital Group will be of great interest to investors. On that day, Arch Capital Group is projected to report earnings of $1.92 per share, which would represent a year-over-year decline of 22.89%. Meanwhile, our latest consensus estimate is calling for revenue of $4.23 billion, up 15.04% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arch Capital Group. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.16% higher. As of now, Arch Capital Group holds a Zacks Rank of #3 (Hold).
Investors should also note Arch Capital Group's current valuation metrics, including its Forward P/E ratio of 10.11. This indicates a discount in contrast to its industry's Forward P/E of 11.72.
We can additionally observe that ACGL currently boasts a PEG ratio of 1.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 21, this industry ranks in the top 9% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.