Arch Capital Group (ACGL) closed at $102.85 in the latest trading session, marking a +1.02% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 1.16%.
Shares of the property and casualty insurer witnessed a gain of 13.61% over the previous month, beating the performance of the Finance sector with its gain of 5.72%, and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Arch Capital Group in its upcoming release. The company plans to announce its earnings on July 28, 2026. On that day, Arch Capital Group is projected to report earnings of $2.45 per share, which would represent a year-over-year decline of 5.04%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.6 billion, indicating a 3.39% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.29 per share and revenue of $18.24 billion, which would represent changes of -5.59% and -2.91%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Arch Capital Group is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Arch Capital Group has a Forward P/E ratio of 10.95 right now. This represents a discount compared to its industry average Forward P/E of 12.05.
One should further note that ACGL currently holds a PEG ratio of 5.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 2.52.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 108, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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 Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).