Arch Capital Group (ACGL) Stock Dips While Market Gains: Key Facts

The latest trading session saw Arch Capital Group (ACGL) ending at $99.68, denoting a -1.17% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 1.19%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 1.96%.

The property and casualty insurer's stock has climbed by 2.7% in the past month, exceeding the Finance sector's gain of 1.86% and lagging the S&P 500's gain of 3.35%.

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 $2.21, reflecting a 15.1% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.91 billion, up 21.96% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.51 per share and a revenue of $15.98 billion, representing changes of +0.71% and +18.45%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arch Capital Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.02% higher. Currently, Arch Capital Group is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 11.85. This valuation marks a discount compared to its industry's average Forward P/E of 12.48.

Also, we should mention that ACGL has a PEG ratio of 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.52.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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