In the latest close session, Arch Capital Group (ACGL) was up +1.65% at $99.83. The stock outpaced the S&P 500's daily gain of 1.06%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.4%.
Coming into today, shares of the property and casualty insurer had lost 0.89% in the past month. In that same time, the Finance sector gained 0.85%, while the S&P 500 gained 2.46%.
Market participants will be closely following the financial results of Arch Capital Group in its upcoming release. The company's upcoming EPS is projected at $1.88, signifying a 32.13% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.46 billion, indicating a 5.4% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $9.44 per share and a revenue of $17.7 billion, demonstrating changes of -4.07% and -5.81%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.44% higher. At present, Arch Capital Group boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Arch Capital Group is presently being traded at a Forward P/E ratio of 10.4. Its industry sports an average Forward P/E of 11.55, so one might conclude that Arch Capital Group is trading at a discount comparatively.
We can also see that ACGL currently has a PEG ratio of 4.84. 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 1.71.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 60, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ACGL in the coming trading sessions, be sure to utilize Zacks.com.
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Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report
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