The latest trading session saw Arch Capital Group (ACGL) ending at $102.43, denoting a +0.53% adjustment from its last day’s close. This change outpaced the S&P 500’s 0.31% loss on the day. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.
The property and casualty insurer’s shares have seen a decrease of 1.42% over the last month, surpassing the Finance sector’s loss of 1.77% and falling behind the S&P 500’s gain of 2.73%.
The upcoming earnings release of Arch Capital Group will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $2.16, reflecting a 12.5% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.9 billion, showing a 21.62% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.55 per share and a revenue of $16 billion, signifying shifts of +1.18% and +18.58%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arch Capital Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Arch Capital Group is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Arch Capital Group is currently trading at a Forward P/E ratio of 11.91. For comparison, its industry has an average Forward P/E of 12.24, which means Arch Capital Group is trading at a discount to the group.
We can also see that ACGL currently has a PEG ratio of 1.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Insurance – Property and Casualty industry currently had an average PEG ratio of 1.57 as of yesterday’s close.
The Insurance – Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
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