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In the latest market close, Arch Capital Group (ACGL) reached $90.09, with a -0.69% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq lost 0.18%.
Shares of the property and casualty insurer witnessed a loss of 0.81% over the previous month, beating the performance of the Finance sector with its loss of 5.26% and the S&P 500's loss of 7.29%.
The investment community will be paying close attention to the earnings performance of Arch Capital Group in its upcoming release. The company's earnings per share (EPS) are projected to be $1.68, reflecting a 31.43% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.56 billion, up 21.05% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.27 per share and a revenue of $18.94 billion, indicating changes of -10.88% and +13.93%, respectively, from the former year.
Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an 8.17% decrease. Arch Capital Group is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Arch Capital Group is holding a Forward P/E ratio of 10.98. This represents a discount compared to its industry's average Forward P/E of 11.31.
It is also worth noting that ACGL currently has a PEG ratio of 3.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty was holding an average PEG ratio of 1.73 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.